Suppose the College of Engineering is planning to sell merchandise this year. They don't know how manystudents will be interested or how many will sell, so they've received three quotes for orders of differentsizes. Assume the relationship is linear or best fit.a) What is the fixed cost? ✔ [ Select]300200250500would cost, based on the above calculations?b) What are the Variablec) If the merchandise is vSmall OrderMedium OrderLarge OrderUnits2505001000[Select]Cost Quote$5,000.00$9,500.00$18,900.00they need 1,500 units, what do you predict itd) If the College of Engineering were to receive an offer from a different producer fora flat rate of $19 per shirt, what would be the breakeven point between the twoscenarios (round to the nearest 10 units)? [Select]

Fixed Costs are costs that do not change with the level of output. They are incurred even if the…

a) What is the fixed cost? ✔ [Select] 300 200 250 c) If the merchandise is v 500 would cost, based on the above calculations? b) What are the Variable Small Order Medium Order Large Order Units 250 500 1000 [Select] Cost Quote $5,000.00 $9,500.00 $18,900.00 they need 1,500 units, what do you predict it d) If the College of Engineering were to receive an offer from a different producer for a flat rate of $19 per shirt, what would be the breakeven point between the two scenarios (round to the nearest 10 units)? [Select]

a) What is the fixed cost? ✔ [Select] 300 200 250 c) If the merchandise is v 500 would cost, based on the above calculations? b) What are the Variable Small Order Medium Order Large Order Units 250 500 1000 [Select] Cost Quote $5,000.00 $9,500.00 $18,900.00 they need 1,500 units, what do you predict it d) If the College of Engineering were to receive an offer from a different producer for a flat rate of $19 per shirt, what would be the breakeven point between the two scenarios (round to the nearest 10 units)? [Select]

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Question

Suppose the College of Engineering is planning to sell merchandise this year. They don't know how many
students will be interested or how many will sell, so they've received three quotes for orders of different
sizes. Assume the relationship is linear or best fit.
a) What is the fixed cost? ✔ [ Select]
300
200
250
500
would cost, based on the above calculations?
b) What are the Variable
c) If the merchandise is v
Small Order
Medium Order
Large Order
Units
250
500
1000
[Select]
Cost Quote
$5,000.00
$9,500.00
$18,900.00
they need 1,500 units, what do you predict it
d) If the College of Engineering were to receive an offer from a different producer for
a flat rate of $19 per shirt, what would be the breakeven point between the two
scenarios (round to the nearest 10 units)? [Select]

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Step 1: Introduce the concept of fixed cost and variable cost.

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Step 2: a) Determine the fixed cost.

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Step 3: b) Determine the variable cost.

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Step 4: c) Determine how much 1500 units of merchandise will cost.

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Step 5: d) Determine the breakeven point

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