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**1. Homework Statement**

A hardware store sells approximately 10 000 light bulbs a year. The owner wishes to determine how large an inventory of x (thousand) bulbs should be kept to minimize the cost for inventory. The carrying cost for the bulbs is $40/1000 while the paperwork for ordering is $12 per order. The variable reorder costs are $24/1000

a) If x (thousand) bulbs are ordered each time, find the yearly cost for ordering the 10 000 bulbs into inventory.

b) On the average his inventory is x/2 (thousand) bulbs. Find the total cost for inventory.

c) Find the size of each order to minimize the cost for inventory.

**2. Homework Equations**

none

**3. The Attempt at a Solution**

This is what I did:

$40/1000 = x/10 000

x= $400

Then, the formula which I developed was [tex]400 +[/tex][tex]\frac{12(10000)}{x}[/tex]

Please help me out and let me know if I am on the right track. Thanks.