Question
ORCO, a cooperative of organic family-owned farms outside of Madison, Wisconsin, has recently started a fresh produce club to provide support to the groups member
ORCO, a cooperative of organic family-owned farms outside of Madison, Wisconsin, has recently started a fresh produce club to provide support to the groups member farms and to promote the benefits of eating organic, locally produced food to the nearby suburban community. Families pay a seasonal membership fee of $29 and place their orders a week in advance for a price of $49 per order. In turn, ORCO delivers fresh-picked seasonal local produce to several neighbourhood distribution points. 600 families joined the club for the first season, but the number of orders varied from week to week. Daniel Craig has run the produce club for the first 10-week season. Before becoming a farmer, Daniel had been a business major in college, and he remembers a few things about cost analysis. In planning for next year, he wants to know how many orders will be needed each week for the club to break even, but first he must estimate the clubs fixed and variable costs. He has collected the following data over the clubs first 10 weeks of operation:
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