Posted by
**JIM** on
.

Your roommate's long hours in the chem lab finally paid off- she discovered a secret formula that lets people do an hour's worth of studying in 5 minutes. So far, she's sold 200 doses and faces the following average total cost schedule

Quantity Average total cost

199 doses $199

200 $200

201 $201

If a new customer offers pay your roommate

$300 for one dose, should she make one more. Explain.

Your figures indicate that it costs your roommate $1 to make 1 dose. It seems to be a no-brainer for her to make one more dose for a sale of $300. If she needs to make 200 doses for $200, she still reaps a great profit by selling one dose for $300.