Question
Jims Videotaping Service recently placed an order for VHS videotape. Jim ordered 6 cases of High-Grade, 4 cases of Performance High-Grade, 8 cases of Standard,
Jims Videotaping Service recently placed an order for VHS videotape. Jim ordered 6 cases of High-Grade, 4 cases of Performance High-Grade, 8 cases of Standard, 3 cases of High Standard, and 1 case of Low Grade. Each case contains 24 tapes. Suppose a case of High-Grade costs $28, Performance High-Grade costs $36, Standard costs $16, High Standard costs $18, and Low costs $6.
a.What is the average cost per case to Jim?
b.What is the average cost per tape to Jim?
c.Suppose Jim will sell any tape for $1.25. Is thisa good business practice for Jim?
d.How would your answers to parts a, b, and c change if there were 48 tapes per case?
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