LEARN MORE...

Revised Check Last Page For Table

Content type

User Generated

Subject

Management

School

Strayer University

Type

Homework

Uploaded By

xbune844

Pages

Showing Page:

1/8

1.You are serving as the chair for your community's annual wellness

campaign. A key event is the annual Walk 3k, Run 10k, Ride 20k

event. The event is staged entirely by volunteers and the goal is to attract

community-wide awareness of getting active as a key step to wellness. In

other words, the goal is not to raise money, but to prompt awareness. As

the chair, you set a financial goal to break even on the one and only cost

of the event, a fitness bag with the community seal and the event motto, “I

AM ON THE RIGHT TRACK!”

The cost of the bags, which must be ordered in batches of 100, are:

Bags

Fixed Cost

Variable

Cost

Total Cost

Marginal

Cost

$1,700

$ -

$1,700

100

$1,700

$500

$2,200

200

$1,700

$1,200

$2,900

300

$1,700

$2,700

$4,400

400

$1,700

$5,200

$6,900

500

$1,700

$9,000

$10,700

600

$1,700

$15,000

$16,700

700

$1,700

$23,800

$25,500

800

$1,700

$36,800

$38,500

130

900

$1,700

$55,800

$57,500

190

1,000

$1,700

$83,000

$84,700

272

Showing Page:

2/8

Bags

Fixed Cost

Variable

Cost

Total Cost

$1,700

$ -

$1,700

100

$1,700

$500

$2,200

200

$1,700

$1,200

$2,900

300

$1,700

$2,700

$4,400

400

$1,700

$5,200

$6,900

500

$1,700

$9,000

$10,700

600

$1,700

$15,000

$16,700

700

$1,700

$23,800

$25,500

800

$1,700

$36,800

$38,500

900

$1,700

$55,800

$57,500

1,000

$1,700

$83,000

$84,700

Given the above information on cost, if you charge $15 per entry, what is the

breakeven quantity of bags that you should order? Orders must be placed in

blocks of 100 bags.

Please select any/all viable approaches below:

Use the profit maximizing rule, MR ≥ MC, buy 300 bags.

Use the profit maximizing rule, MR ≥ MC, buy 200 bags.

Use Qb = F/(MR-AVC) where Qb is the breakeven quantity to be determined,

the optimal quantity of bags is 300.

Use Qb = F/(MR-AVC) where Qb is the breakeven quantity to be

determined, the optimal quantity of bags is 200.

3.Your marketing department just undertook a major advertising campaign

promoting the quality of your Best Brand Bike Shorts—BBB Shorts.

They have provided you with an estimate of the success of the campaign

stating: “the price elasticity of demand has decreased from-5.76 to -3.76.”

Before the campaign, your price was $240 per pair of BBB

Shorts. What should the new price be?

Please enter the new price here: $

[a]

270.20

THE ANSWER IS 270.19 BUT SINCE IT IS ESTIMATED

YOU CAN US 270.20

Showing Page:

3/8

End of Preview - Want to read all 8 pages?

Access Now

Unformatted Attachment Preview

1.You are serving as the chair for your community's annual wellness campaign. A key event is the annual Walk 3k, Run 10k, Ride 20k event. The event is staged entirely by volunteers and the goal is to attract community-wide awareness of getting active as a key step to wellness. In other words, the goal is not to raise money, but to prompt awareness. As the chair, you set a financial goal to break even on the one and only cost of the event, a fitness bag with the community seal and the event motto, “I AM ON THE RIGHT TRACK!” The cost of the bags, which must be ordered in batches of 100, are: Bags Fixed Cost 0 100 200 300 400 500 600 700 800 900 1,000 $1,700 $1,700 $1,700 $1,700 $1,700 $1,700 $1,700 $1,700 $1,700 $1,700 $1,700 Variable Cost $$500 $1,200 $2,700 $5,200 $9,000 $15,000 $23,800 $36,800 $55,800 $83,000 Total Cost $1,700 $2,200 $2,900 $4,400 $6,900 $10,700 $16,700 $25,500 $38,500 $57,500 $84,700 Marginal Cost 5 7 15 25 38 60 88 130 190 272 Bags Fixed Cost Variable Total Cost Cost 0 $1,700 $$1,700 100 $1,700 $500 $2,200 200 $1,700 $1,200 $2,900 300 $1,700 $2,700 $4,400 400 $1,700 $5,200 $6,900 500 $1,700 $9,000 $10,700 600 $1,700 $15,000 $16,700 700 $1,700 $23,800 $25,500 800 $1,700 $36,800 $38,500 900 $1,700 $55,800 $57,500 1,000 $1,700 $83,000 $84,700 Given the above information on cost, if you charge $15 per entry, what is the breakeven quantity of bags that you should order? Orders must be placed in blocks of 100 bags. Please select any/all viable app ...
Purchase document to see full attachment

Tags: total cost marginal cost variable cost fixed cost The Cost of The Bags Which Must Be Ordered in Batches of 100