1. Stater Sisters, a privately held supermarket chain, based in San Bernardino, California, has recently started a fresh produce club to provide support to local chains and to promote the benefits of buying locally grown food. Families pay a seasonal membership fee of $100 and place their orders a week in advance for a price of $40 per order. In turn, Stater Sisters delivers fresh-picked seasonal local produce to several neighborhood distribution points. Five hundred families joined the club for the first season, but the number of orders varied from week to week.

Jack Brown has run the produce club for the first season. Jack is now a store manager but remembers a few things about cost analysis from CSUSB. In planning for next year, he wants to know how many orders will be needed each week for the club to break even, but first he must estimate the club's fixed and variable costs. He has collected the following data over the club's first season of operation:

WEEK	Orders per Week	Weekly Costs
1	415	$ 26,900
2	435	$ 27,200
3	285	$ 24,700
4	325	$ 25,200
5	450	$ 27,995
6	360	$ 25,900
7	420	$ 27,000
8	465	$ 28,300
9	380	$ 26,425
10	350	$ 25,750

YOUR WORK MUST BE SHOWN IN CALCULATING YOUR RESPONSE (submit an Excel or Word doc showing your work)

Q1. Estimate the cost equation using the high-low method.

Q2. Did Stater Sister break even this season? Remember that each of the families paid a seasonal membership fee of $100.

Q3. Assume that 500 families join the club next year (remember, this is an annual membership) and that prices and costs do not change. How many orders, on average, must Stater Sister receive each of 10 weeks next season to break even?