plese answer all quastions With the explanation of the answer Answer questions 1 to 3 using the following information: Medro and Mariana decided to add soup to their menu. When they did all the calculations of whether to make the soup themselves in house or buy it from an outside source they found the fixed cost to make the pots of soup to be = 10000 KD/yr and the fixed cost associated with buying the pots of soup to be = 5000 KD/yr. The outside source charges 10 KD per pot of soup, and it costs Medro & Mariana 5 KD to make each pot of soup?

Q1 How many pots of soup would Medro & Mariana have to sell per year in order for the total annual cost to make the soup in-house to equal the total annual cost to buy it from the outside source? a. 5000 pots/yr

b. 1000 pots/yr

c. 10000 pots/yr

d. 300 pots/yr Q2 Medro & Mariana believe they can sell 1 pot per day. This means they should be able to sell 365 pots per year. Should they go ahead and make the soup themselves or should they outsource it?

a. they should outsource the soup

b. they should make the soup in-house

c. it doesn't matter which option they take Q3 After selling the soup for one year, Mariana found a way to make the soup with a fixed cost of 4000 KD/yr. She also found a way to make the fixed cost if the soup is outsourced to be 1000 KD/yr. The cost to make the soup is still the same, i.e.,5KD/pot. If Medro & Mariana want the maximum indifference number of pots of soup/yr to not exceed 200 pots/yr, what should the maximum cost per pot of soup be if they are going to buy it from an outside source? (5 Points)

a. 5 KD/pot

b. 10 KD/pot

c. 15 KD/pot