LAB $8$: ESTIMATING MARGINAL COST $($ASSIGNMENT$)$

NAME

Note: you will need to complete both written work on this assignment in addition to work

on your Excel template file. Be sure you turn in both after finishing your lab for full credit.

Problem $1.($In Excel, $16$ points$)$ Be sure you have followed along and completed the

work in the Excel template during the examples covered in lab.

Problem $2.$ For this problem, you will continue to work with Example L$\mathrm{.}8\mathrm{.}1$ regarding

the carpet cleaning company.

a$)(4$ points$)$ Suppose that the carpet cleaning company is exploring decreasing its prices

to better compete. The price of $$140$ per job is suggested. Based on your data, does

a price of $$140$ seem like a good or bad idea? Explain your response and support your

answer using the data from Excel.

b$)(4$ points$)$ Next, a price of $$150$ per job is suggested. How many jobs per week must

be secured in order to assure that the business continues to be profitable at this price?

Explain your response and support your answer using the data from Excel.