A W Clothing Store can purchase women's belts for $28 each or make their own. If they produce the belts in-house, the fixed costs will be $15,000 and the variable costs will be $18 per belt. Management estimates there is a 60% chance that demand will be 1,000 belts and a 40% chance that demand will be 2,000 belts.

1. The cost function if AW makes the belts is:

2. The cost function if AW buys the belts is:

3. The demand (quantity) for which AW is indifferent between making or buying the belts is:

4. The expected demand for the women's belts is:

Group of answer choices:

C = 16,500 + 46q C = 10q C = 16,500 + 28q indifferent C = 15,000 + 18q 1,400 belts buy C = 28q 1,000 belts 1,500 belts C = 46q C = 16,500 + 10q none of these make 2,000 belts