## Answers

solution: 2 Giren option A pay = 84.5/swfoot option B: fixed cost = 82400 plus $3.5 perso,foot optione: $3.00 persa foot, fixed cost=84600. (a) Cost functions for the 3 options are: >All costs are calcolated on monthly basis. Letx axis denotes space required in square fout lety axis denotes copte per month in dollars. The cost function for the 3 equations become. for options A = f(x)= 4.5% foroptin B =96) = 3.5 2+ 2.400 for option co hex) = 3x + 46oo.

(6) The plot of the cost function is:

The plot of f(x), g(x), h(x) for different rates of X 0 1000 4500 2000 9000 3000 4000 13500 18000 5000 Fasco f(x) 0 12900 1 Gunu 19900 9400 g(x) 2900 5900 7600 10600 13600 19600 16600 h4) 4600

Graph: f(x) g(x) A Costa) 20000 18000 (Good (69500 TISDOO) (4000 12000 2000 TTTTT Jo 2000 2000 2000 4000 5000 6ooo tooo 3 Area frea (sq fort) @ The option should minimile storage Cost 18: » for area requirement less than 2400 fquare foot optim A f(x) is best minimising storage cost

for area sequirement 240oto 3500 square foot optim B g(x) is best greater than or equal to for area requirement h(x) is a best .3500 square foot, option C has o

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