You've been asked to recommend the appropriate order quantity of graduation for next year's commencement. To make this recommendation you ask what the mean sales had been for the past five years and the cost of an individual program. Although commencement programs are provided at no cost, you estimate the embarrassment of running sort as $4.00 per person. The cost of each individual program is $1.00 with zero Salvage value. Given this information, how many commencement programs do you recommend be purchased?
Mean sales for previous four years: 500, 595, 490, 525, and 490
Question 6 (10 points) You've been asked to recommend the appropriate order quantity of graduation programs for next year's commencement. To make this recommendation you ask what the mean sales had been for the past five years and the cost of an individual program. Although commencement programs are provided at not cost, you estimate the embarrassment of running sort as $4.00 per person.
recommend be purchased?