Question: Problem 3: Total Cost and Expected Value (6 points) You are considering buying the sunglasses store your cousins owns. You know the fixed costs are

Problem 3: Total Cost and Expected Value (6 points) You are considering buying the sunglasses store your cousins owns. You know the fixed costs are $15,000 per month and the variable costs for each sunglasses sold is $25. Your cousin has done some market research and estimated the following demand scenarios and probability of each level of demand. Demand Level Probability Low Demand Medium Demand High Demand Monthly Sunglasses Sold 1,500 2,000 3,000 50% 30% 20% a) What is the total monthly cost (fixed plus variable) for the sunglasses store if there is high demand for sunglasses? (3 points) b) What is the expected value of the total monthly cost for the sunglasses store? (3 points)

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