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Number of rakes

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Number of rakes

by mjjking » Mon Mar 23, 2009 11:06 pm
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by bluementor » Tue Mar 24, 2009 3:42 am
Nov - Feb (4 months): Company produced 4x rakes @ x rakes per month
Mar - Oct (8 months): Company shipped 4x rakes @ x/2 rakes per month

We are interested in the amount stored between Mar-Oct only, since no storage cost incurred between Nov-Feb.

The important point to note in the question here is that the company ships out x/2 rakes at the beginning of each month (from Mar - Oct). So this means, in Mar, the company started off with 3.5x rakes in its storage. And every month, this gradually reduces by x/2. You now have an arithmetic progression for the monthly storage quantities between Mar-Oct.

3.5x 3x 2.5x 2x 1.5x 1x 0.5x 0x

Notice that in October, the number of rakes stored is 0 because the last x/2 rakes were shipped out at the beginning of October.

Summing up the quantities, you get:

Total storage (Mar - Oct)= 3.5x + 3x + 2.5x + 2x + 1.5x + 1x + 0.5x + 0x
= 14x

Total storage cost (Nov - Oct) = 14x*(0.1) = 1.4x

Choose C.

-BM-
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