(Powered by Koffee) Powered by Koffee (PBK) is a new campus coffee store. PBK uses 50 bags of whole. 1 answer below »


(Powered by Koffee) Powered by Koffee (PBK) is a new campus coffee ammunition. PBK uses 50 bags of healthy bean coffee every month, and you may wear that claim is accurately uniform throughout the year. PBK has identified a year-long narrow to donation its coffee from a national supplier, Phish Roasters, for a appraisement of $25 per bag and an $85 unroving consume for every donation rebellious of the direct bigness. The calling consume due to storage is $1 per bag per month. PBK managers aspect their consume of important is approximately 2 percent per month.

a. What is the optimal direct bigness, in bags? [5.6]

b. Given your defense in (a), how numerous times a year does PBK assign directs? [5.6]

c. Given your defense in (a), how numerous months of minister of coffee does PBK enjoy on mean? [5.6]

d. On mean, how numerous dollars per month does PBK lay-out to abide coffee (including consume of important)? [5.6] Suppose that a South American import/export sodality has offered PBK a dispense for the direct year. PBK can buy a year’s excellence of coffee straightway from South America for $20 per bag and a unroving consume for donation of $500. Wear the estimated consume for inadvertence and storage is $1 per bag per month and the consume of important is approximately 2 percent per month.

e. Should PBK direct from Phish Roasters or the South American import/export sodality? Quantitatively excuse your defense. [5.6]