Question: answer the question from 1 to 7 please ORCO, a cooperative of organic family-owned farms outside of Madison, Wisconsin, has recently started a fresh produce

answer the question from 1 to 7 please ORCO, a

answer the question from 1 to 7 please

ORCO, a cooperative of organic family-owned farms outside of Madison, Wisconsin, has recently started a fresh produce club to provide support to the group's 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 $97 and place their orders a week in advance for a price of $46 per order. In turn, ORCO delivers fresh-picked seasonal local produce to several neighbourhood distribution points. Seven hundred 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 club's fixed and variable costs. He has collected the following data over the club's first 10 weeks of operation: Please answer the following questions: (next page) REQUIRED: 1. Plot the relationship between number of orders per week and weekly total costs on a graph. (0.5 marks) 2. Estimate the cost equation using the high-low method, and draw this line on your graph. (1 mark) 3. Daniel uses his computer to calculate the following regression formula: Total weekly costs =$13,042+($24.462 Number of weekly orders ) Draw the regression line on your graph. ( 0.5 marks) 4. Is the regression line plausible (makes sense)? Explain. (0.5 marks) 5. Which cost function (estimated by the high-low method, or estimated using the regression method) is better? Explain briefly. ( 0.5 marks) 6. Did ORCO break even this season? Remember that each of the families paid a seasonal membership fee. (1 mark) 7. Assume that 1150 families join the club next year and that prices and costs do not change. How many orders, on average, must ORCO receive each week to break even? Assume that the season is again 10 weeks long. (1 mark)

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