Scenario 16.7-Commencement Every year at commencement, the president hands out diploma covers to joyous students that cross the front of the auditorium to accept the cover and a hearty handshake. Commencement exercises have averaged 850 students with a standard deviation of 70 the last several years. The bookstore can provide a box of 144 diploma covers for $2.000 but is unwilling to break bulk. Any additional diploma covers must be purchased on the black market at $15 each. 58) Use Scenario 16.7 to answer the following. How many gross of diploma covers should be ordered from the bookstore? A) 3 B) 4 C) 5 D) 6 Answer: C Diff: 3 Topic: 16.5: Constructing a Portfolio of Bulk Contracts and Spot Buying AACSB: Analytical thinking Objective: LO 16.5 Describe how both buyers and sellers can combine long-term contracts and spot purchases to increase 59) Use Scenario 16.7 to answer the following. If the university orders the optimal number of boxes of diploma covers from the bookstore, how many additional covers must they obtain from the black market? A) 81 B) 87 C) 90 D) 94 Answer: D Diff: 3 Topic: 16.5: Constructing a Portfolio of Bulk Contracts and Spot Buying AACSB: Analytical thinking Objective: LO 16.5 Describe how both buyers and sellers can combine long-term contracts and spot purchases to increase 60) Use Scenario 16.7 to answer the following. What would the cost of a gross of diploma covers have to fall to in order for an optimal order to equal the mean? A) $1080 B) $1110 C) $1140 D) S1170 Answer: A Diff: 3 Topic: 16.5: Constructing a Portfolio of Bulk Contracts and Spot Buying AACSB: Analytical thinking Objective: LO 16.5 Describe how both buyers and sellers can combine long-term contracts and spot purchases to increase