Instruction: This practice quiz is designed to help you prepare the first quiz. You are expected to submit multiple times before the deadline, so you can get the full credit. The question is based on our class discussion. Do note that by trying on your own, you will have much more confidence than just listening to me or taking note in class. Example 2-1. The demand: 50,000 yd of mixed-asphalt-paving material during four months (17 weeks of 5 days/week) Cost Factor Site A Site B Average hauling distance 4 miles 3 miles Monthly rental of the site $2,000 $7,000 Cost to set up and remove $15,000 $50,000 equipment Hauling expense $2.75/yd3-mile $2.75/yd3-mile Flagperson Not required $150/dayInstruction: This practice quiz is designed to help you prepare the first quiz. You are expected to submit multiple times before the deadline, so you can get the full credit. The question is based on our class discussion. Do note that by trying on your own, you will have much more confidence than just listening to me or taking note in class. Example 2-1. The demand: 50,000 yd of mixed-asphalt-paving material during four months (17 weeks of 5 days/week) Cost Factor Site A Site B Average hauling distance 4 miles 3 miles Monthly rental of the site $2,000 $7,000 Cost to set up and remove $15,000 $50,000 equipment Hauling expense $2.75/yd3-mile $2.75/yd3-mile Flagperson Not required $150/dayPart 2. Now we need to find the breakeven point. As we discussed in class, the contractor will spend 4 months to deliver everything. So we are in fact looking for a specific amount of material to be delivered when the contractor's revenue equals the total cost of delivering that amount of material. The textbook states that the contractor will sell the material for $12/yd3. Assuming an amount of material, Y yd , will need to be delivered in order to have a breakeven, then the total cost at that point of time isPart 3. The same equation, revenue = total cost, can be used here. The only thing changed is the unit price. For unit price = $15 /yd , the amount of material to be delivered, Y = yd' (write down your answer as an integer, e.g. no decimal points) Do note that you might have tried to round off the answer. However, that answer is not correct as it is not enough to reach the breakeven point (the shaded area in the right-hand side). In the same token, for unit price = $11.5 /yd', the amount of material to be delivered, Y = yd' (write down your answer as an integer). For unit price = $10 /yd3, the amount of material to be delivered, Y = yd3 (write down your answer as an integer). Do note that the total amount to be delivered is 50,000 yd within four months, which is less than your amount above. What this means is that the two lines just convert too slowly, way behind the total amount required. It also means that the unit price is not enough to cover everything; the contractor will lose money at the end