1. A furniture store expects to sell 640 sofas at a steady rate next year. The manager of the store plans to order these sofas from the manufacturer by placing several orders of the same size spaced equally throughout the year. The ordering cost for each delivery is $160. And carrying costs, based on the average number of sofas in inventory, amount to $32 per year for one sofa.

• Let x be the order quantity and r the number of orders placed during the year. Find the inventory cost in terms of x and r.
• Find the constraint function.
• Determine the economic order quantity that minimizes the inventory cost, and then find the minimum inventory cost.

1. Until recently, hamburgers at the city sports arena cost $4 each. The food concessionaire sold an average of 10,000 hamburgers on a game night. When the price was raised to $4.40, hamburger sales dropped off to an average of 8000 per night.

• Assuming a linear demand curve, find the price of a hamburger that will maximize the nightly hamburger revenue.
• If the concessionaire has fixed costs of $1000 per night and the variable cost is $0.60 per hamburger, find the price of a hamburger that will maximize the nightly hamburger

1. The demand equation for a certain commodity is