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4. A local livestock producer utilizes compost waste to develop an organic fertilizer product. The fertilizer is prepared for retail sale in 50 pound bags.

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4. A local livestock producer utilizes compost waste to develop an organic fertilizer product. The fertilizer is prepared for retail sale in 50 pound bags. The retail sales price is $7.00 per bag. The average variable cost per bag is $4.80 and the annual fixed cost is $120000. Find the break- even units and the break-even sales. 5. Predict the demand for the 7th year using the following methods: a) Naive method b) Mean (Simple average) c) Simple moving average (2 previous years at a time) d) Weighted moving average. The weights that were to be used are as follows: Most recent year, .5; year prior to that, .3; year prior to that, .2 Year Actual Demand Forecast 310 355 460

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