Over at Duffin House, Marjory Duffin is trying to decide on the size of the print runs for the best-selling new fantasy novel Larry Plotter and the Simplex Method. The following model shows a calculation of the total cost to produce a million copies of the novel, based on an analysis of setup and storage costs c(n) = 0.0008n²-74n+ 2,000,000 dollars, where n is the print run size (the number of books printed in each run). (a) What would be the effect on cost if the run size was increased from 20,000 to 30,000? and a run of 30,000 would cost $ dollars. A run of size 20,000 would cost $ $30,000 per month would result in a savings of . Thus, increasing the run size from $20,000 to (b) Would increasing the run size in further steps of 10,000 result in the same changes in the total cost? Explain. O The cost decreases at a faster and faster rate and then begins to increase. Going from 30,000 to 40,000 decreases the cost by about the same a going from 20,000 to 30,000. O The cost decreases at a slower and slower rate and then begins to increase. Going from 30,000 to 40,000 decreases the cost by about the same a going from 20,000 to 30,000. O The cost decreases at a slower and slower rate and then begins to increase. Going from 30,000 to 40,000 decreases the cost considerably less than going from 20,000 to 30,000. O The cost decreases at a faster and faster rate and then begins to increase. Going from 30,000 to 40,000 decreases the cost by much more than going from 20,000 to 30,000. O The cost decreases at a constant rate and the savings is the same for every 10,000 book increase in the print run. (c) What run size would you recommend that Marjory Duffin use for a minimum cost? books

This is a two part question. Collin has a small business selling hotdogs at tennis matches. He purchases all of the materials to make each hotdog for $2.60 and has fixed costs at each match of $10. Collin sells each hotdog to customers for $3.60. At most he can produce 42 hotdogs at a match. (1) Draw a complete break-even chart of Collin's hotdog business. Your picture should have a dot on the break-even point and lines for total revenue, total cost, and fixed cost. y, Revenue/Cost ($) 150 140 130 120 110 100 90 80 70 60 50- 40 30- 20 10 24 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 x, Units

A researcher believed that the number of rental cars in service by a car rental company would have an impact on the total annual revenue for that car rental company. Five small car rental companies were surveyed, with the number of Cars in service recorded in units of 1000 (so if a car rental company had 54000 cars in service, a 54 would be recorded) and Annual Revenue measured in millions of dollars (so an Annual Revenue of $10,000,000 would be recorded as 10). The data follows: Cars (1,000s)       Annual Revenue ($ millions)11.5                   118 10.0                   135 9.0                     100 5.5                     37 3.3                     32 Part of the Excel-generated Simple Linear Regression output is provided below: ANOVA   df SS MS F Significance F Regression 1 7891.863897 7891.863897 22.91180151 0.017339231 Residual 3 1033.336103 344.4453677     Total 4 8925.2           Coefficients Standard Error t Stat P-value Intercept -19.12490108 23.1658578…