Cam industries are selling a webcam for work at home companies using this Smithfield-Wetherill

park plant. This is a new service they are starting so no other data is available on this product.

They also will provide a service designing and installing camera security systems. This is an old part

of their business, so Cam industries has provided some previous sales data for you.

The cost of manufacturing the webcam is $15.29 in parts and $10.70 in consumables per webcam

and $2.01 in running costs. The plan is set up to produce 60 webcams per week.

The profit for the security camera system sales depends on the tier sold (excluding GST)

- Small systems $400 + $100 installation fee

- Medium systems $700 + $150 installation fee

- Large systems $1200 + $200 installation fee

The security systems sales data for 2018-19 and 2019-20 is provided:

Security system sales

Year Month Small cf Medium cf Large cf

2018-19 July 19 19 8 8 6 6

August 18 37 8 16 8 14

September 18 55 12 28 8 22

October 19 74 15 43 7 29

November 20 94 13 56 8 37

December 22 116 9 65 6 43

January 18 134 10 75 9 52

February 27 161 9 84 4 56

March 30 191 10 94 6 62

April 27 218 13 107 11 73

May 23 241 15 122 5 78

June 24 265 11 133 9 87

2019-20 July 17 282 14 147 9 96

August 21 303 12 159 11 107

September 19 322 8 167 7 114

October 28 350 10 177 10 124

November 29 379 14 191 9 133

December 21 400 10 201 8 141

January 27 427 14 215 10 151

February 25 452 11 226 9 160

March 29 481 12 238 8 168

April 26 507 11 249 8 176

May 27 534 13 262 9 185

i. Construct an ungrouped frequency distribution of the numbers of sales of security systems

(separated by small, medium, and large systems). Show the cumulative frequency on your

table. Find the mean, median and lower quartile of this data.

Mean

Small	534	534/23=23.21
Medium	262	262/23=11.39
Large	185	185/23=8.04

Median

Small
Medium
Large

ii. If the mean number of security systems are sold per month, how much revenue is expected

per year?

iii. If Cam industries sells the mean number of security systems each month in addition to the

webcams, what price (excluding GST) must the webcams be sold at to break-even over the

2021-22 financial year, assuming the plant is run at full production capacity for the entire

year, and they sell all webcams produced (60 units per week)? (Expenses are shown on page

3. Remember that depreciation is an expense).

iv. Cam industries wants to sell the webcams at $92 profit per webcam. What is the sale price

per webcam after GST is added? What do you expect the annual profit of the webcams to be

if all produced units are sold at this profit margin?