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Blue Baker produces fruit pies for freezing and subsequent sale. The bakery, which operates 5 days per week, 5 2 weeks per year, can produce
Blue Baker produces fruit pies for freezing and subsequent sale. The bakery, which operates
days per week, weeks per year, can produce pies at the rate of pies per day. The bakery sets
up the pie production operation and produces until a predetermined number Q of pies has been
produced. When not producing pies, the bakery uses its personnel and facilities for producing
other bakery items. The setup cost for a production run of fruit pies is $ The cost of holding
frozen pies in storage is $ per pie per year. The annual demand for frozen fruit pies, which is
constant over time is pies. Determine the following: points
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