1. Good post? |

## Another one

A manufacturer can save x dollars per unit in production costs by overproducing in certain seasons. If storage costs for the excess are y dollars per unit per day (x>y), which of the following expresses the maximum number of days that n excess units can be stored before the storage costs exceed the savings on the excess units ?

A x-y
B (x-y)n
C x/y
D xn/y
E x/yn

2. Good post? |
Ans E> x/yn

3. Good post? |

4. Good post? |
A manufacturer can save x dollars per unit.

So \$x is the cost of 1 unit.
For 1 day the storage cost for 1 unit is \$y.
i.e \$y is the storage cost for 1 unit for 1 day.
\$ny is the storage cost of n units for 1 day.
\$1 is the storage cost of n units for 1/ny day.
\$x is the cost of of excess n units for x/ny days.

Am i right. Please correct me if i am worng.

5. Good post? |
i think ans is C:x/y
what is actual ans ???

solution:
for n units he got \$nx money.
but to store it, he has to give \$y per unit per day ;so for n units he has to pay \$ny per day . now for \$nx he needs nx/ny days
so ans is x/y.

seema

6. Good post? |
C is the right one....indeed seemahesh

7. Good post? |
I agree with seemahesh. A very simple reasoning would be the following. Supposing the guy saves \$10 a day per unit, and the storage cost is \$2 per day (for each unit), then he can only store it for 5 days before the cost exceeds the benefit. Thus x/y = 10/2 = 5 days. Since this happens for each unit, n is irrelevant.

Note: If one can see that n doesn´t matter early on, the problem is reduced to choosing between alternatives a) and c), which of course is much faster.

D

8. Good post? |
should be ny/x, I think
A manufacturer can save x dollars per unit in production costs by overproducing in certain seasons. If storage costs for the excess are y dollars per unit per day (x>y), which of the following expresses the maximum number of days that n excess units can be stored before the storage costs exceed the savings on the excess units
Assume N is the max of that day, N*x>=ny, so N=ny/x

9. Good post? |
I think it's C (x/y). Socialelite, I think that your answer forget that y represents the cost per unit.

assume, that we save \$10 per unit. And the cost is \$5 PER UNIT. So if we have 3 products:

10x3 (total cut) = 3x5xd
d= [10x3/]/ [3x5] = 10/5 = x/y (2 days)

if we use nx/y we get 3x10/5=6 ...but this mean that

3x10=5x6.....but 5 is the cost per unit and not the cost of all units together.

10. Good post? |
C) x/y

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