Odious Pte Ltd is the regional distributor of Japanese anime. The company decides to take legal action against those who had downloaded their anime illegally. The table below shows the number of persons sued and the total costs incurred for each of the previous 8 months.

How much damage or penalty must Odious recover, on average, from each person sued if the company wants to cover all related variable and fixed costs with estimated of only 20 cases (i.e. 20 persons sued) a month?

If the law firm, Ambu-Chaser, offers to handle all such cases for Odious at a monthly fee that is set at $1,000 plus $1,000 per case. Odious can decide on a month to month basis whether to engage Ambu- Chaser. Under what condition should Odious engage the law firm in order to minimize its costs?

(Ignore the given data and assume Odious cost structure related to the law suits to be = $12,000 + $500 x Number of Cases) Be very brief. The answer requires a number

Date Jan 08 Feb 08 Mar 08 Apr 08 May 08 Jun 08 Jul 08 Aug 08 Number of persons sued 37 47 21 28 31 22 46 35 Total Costs $33,310 $38,610 $24,830 $28,540 $30,130 $24,740 $38,780 $32,250