Each year The Calendar Shop orders calendars for the coming year. Anticipated demand for the coming year is for 2000 calendars. The Shop's fixed costs are $750. Each calendar cost $3 and The Calendar Shop sells each one for $5.00. At the end of July during the next year, The Shop will reduce the calendar price to 60% of the original selling price and will sell all the surplus calendars at this price. Assume the original selling price varies from $4.00 to $7.25 in increments of $0.25. The Calendar Shop can order in increments of 250 calendars up to a maximum of 4000 calendars. Answer the questions below. For each question, start with the original conditions given here. QUESTION 6 1. If the order quantity is 500, the Calendar Shop will break even at a sale price of. O A. $4.50 O B. $5.25 O C. $6.50 O D. $7.25 QUESTION 7 and order quantity of 1. The Calendar Shop will make a profit of $5,200 at a sale price of. O A. $6.75 and 1,750 O B. $6.00 and 3,250 C C. 55.75 and 3,000 O D. $5.00 and 3,750

Algebra and Trigonometry (6th Edition)
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ChapterP: Prerequisites: Fundamental Concepts Of Algebra
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Each year The Calendar Shop orders calendars for the coming year. Anticipated demand for the coming
year is for 2000 calendars. The Shop's fixed costs are $750. Each calendar cost $3 and The Calendar
Shop sells each one for $5.00. At the end of July during the next year, The Shop will reduce the calendar
price to 60% of the original selling price and will sell all the surplus calendars at this price. Assume the
original selling price varies from $4.00 to $7.25 in increments of $0.25. The Calendar Shop can order in
increments of 250 calendars up to a maximum of 4000 calendars. Answer the questions below. For
each question, start with the original conditions given here.
QUESTION 6
1. If the order quantity is 500, the Calendar Shop will break even at a sale price of.
O A. $4.50
O B. $5.25
O C. $6.50
O D. $7.25
QUESTION 7
and order quantity of
1. The Calendar Shop will make a profit of $5,200 at a sale price of.
O A. $6.75
and
1,750
O B. $6.00
and
3,250
C C. 55.75
and
3,000
O D. $5.00
and
3,750
Transcribed Image Text:Each year The Calendar Shop orders calendars for the coming year. Anticipated demand for the coming year is for 2000 calendars. The Shop's fixed costs are $750. Each calendar cost $3 and The Calendar Shop sells each one for $5.00. At the end of July during the next year, The Shop will reduce the calendar price to 60% of the original selling price and will sell all the surplus calendars at this price. Assume the original selling price varies from $4.00 to $7.25 in increments of $0.25. The Calendar Shop can order in increments of 250 calendars up to a maximum of 4000 calendars. Answer the questions below. For each question, start with the original conditions given here. QUESTION 6 1. If the order quantity is 500, the Calendar Shop will break even at a sale price of. O A. $4.50 O B. $5.25 O C. $6.50 O D. $7.25 QUESTION 7 and order quantity of 1. The Calendar Shop will make a profit of $5,200 at a sale price of. O A. $6.75 and 1,750 O B. $6.00 and 3,250 C C. 55.75 and 3,000 O D. $5.00 and 3,750
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