Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Clubs often do some buying and selling during fundraisers, working with a vendor to make mugs, T-shirts, hoodies etc. that display the club's logo. There

Clubs often do some buying and selling during fundraisers, working with a vendor to make mugs, T-shirts, hoodies etc. that display the club's logo. There can be big savings for bulk orders. DiscountMug$ (http://www.discountmugs.com) is an on-line company with this kind of service. Suppose a high school group orders T-shirts for a fundraiser. The table below shows the pricing shown on the website. Note that the fixed cost involved in setting up the printing with the logo is absorbed into the pricing schedule.

Quantity: 12+ 24+ 36+ 72+ 144+ 288+ 576+ 1008+ 2016+

Color T: $4.63 $4.12 $4.09 $3.97 $3.96 $3.94 $3.81 $3.49 $3.22

a) We have seen problems for which breaking even was the goal, but in the context of fundraising the idea of break even is not really the point! The goal may be to raise enough funds for, say, the choir to take part in an out of state competition, or for the Odyssey of the Mind team to go to World's.

i) If the club is comfortable charging $8 per T-shirt how many must be sold to raise $1000?

ii) If the club is comfortable charging $10 per T-shirt how many must be sold to raise $1000?

b) If the club can only sell 50 T-shirts what price must be charged in order to get the $1000?

c) Are problems involving bulk order discounts linear models? Or are they nonlinear? Explain you reasoning.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

An Introduction to the Mathematics of financial Derivatives

Authors: Salih N. Neftci

2nd Edition

978-0125153928, 9780080478647, 125153929, 978-0123846822

More Books

Students also viewed these Mathematics questions

Question

What is the difference between express warranties and puffing?

Answered: 1 week ago