Review Group Problems G11-1: Exchange Rate Effect on Industry and G11-2: Exchange Rate Effects on Your Firm, located at the end of Chapter 11 in Managerial Economics: A Problem Solving Approach. Select one problem that relates to you and your current position in the work environment. Complete your response in 750-1,000 words. Support your response with personal experiences or examples.Alternate Scenario: If you are in an industry that does not deal with any foreign exchange transactions, use the petroleum industry for this assignment. Imagine that you work for a domestic oil refinery, and answer either question G11-1 or G11-2. You do not work for an oil producer, but rather for a refinery, which turns crude oil into many different petroleum products, from jet fuel to gasoline, which are then sold to world markets. You have the option of purchasing crude oil from U.S. sources or from various foreign countries. You must purchase crude oil in order to make products that you can sell in the United States or in other countries.Prepare this assignment according to the guidelines found in the APA Style Guide, located in the Student Success Center. An abstract is not required.This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.You are required to submit this assignment to Turnitin. Please refer to the directions in the Student Success Center.Textbook1. Managerial Economics: A Problem Solving ApproachRead Chapter 11 in Managerial Economics: A Problem Solving Approach.http://gcumedia.com/digital-resources/cengage/2015/managerial-economics_ebook_4e.php

 

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 breakeven on the one and only cost of the event, a fitness bag with the community seal and the event moto, “I AM ON THE RIGHT TRACK!You will charge an entry fee of $15 per participant. Determine the breakeven quantity of bags.2) Your Best Brand Bike Shorts-BBB Shorts have been flying off the shelf. Your chief economist tells you that during the Covid-19 pandemic, the taste for bicycling has shifted. The demand curve is much more inelastic. The price elasticity of demand has decreased from:3)Seven years ago, you started a cross-town delivery service. You have two types of delivery services. You have a small parcel service for anything that is flat and measures less than 11x17. You have a package service using a 100 lb capacity bike trailer for anything weighting up to 10 lbs. Initially, you charged the same price for each service, but since the beginning of the Covid- 19 pandemic you have seen an increased in the demand for your package service. The demand for the package services seems to be more inelastic than the demand for parcels. You are now wondering if you should charge different prices for the parcel and package service or should you segment the market and charge two different prices?4) You operate a Caribbean destination resort. You currently offer plans for a cruise departing from the resort and plans for a casino stay. It is expected that in 2021 there will be some return to more normal travel. You will re-launch your advertising for 2021 announcing that customers will be able to do both tours for one price. Your marginal cost per customer across both tours isFrom experience you know that some traveler will never bundle. For example, you know that about 21% of your customers decline cruises because of sea sickness. At least 12% decline the casino trip saying they don’t believe in gambling. As a rough estimate you initially expect that approximately 33% of your customers will never bundle. Will mixed bundling increase profits? You must show that calculations that support your conclusion. The cost of the bags, which must be ordered in batches of 100, are: Bags Fixed Cost Variable Cost Total Cost Average Variable Cost Marginal Cost Total Revenue wt Price $15 Marginal Revenue 0 1700 0 100 1700 500 200 1700 1200 300 1700 2700 400 1700 5200 500 1700 9000 600 1700 15000 700 1700 23800 800 1700 36800 900 1700 55800 1000 1700 83000 a)Complete the table. If this was a profit-making activity, at the entry fee of $15, what would be the profit maximizing quantity of bags. -5.76 to -2.70.” Before the campaign your price was $240 per pair of BBB Shorts. What should be the new price? Complete the tables below and determine the best price strategy: price the services differently in each segment; or continue the one price policy? Combined Parcels & Packages Price Parcels and Packages TR MR TC MC MR-MC Profit 100 50 1600 90 120 2300 80 190 3000 70 260 3700 60 330 4400 50 400 5100 40 470 5800 30 540 6500 20 610 7200 10 680 7900 The Parcels Market Price Parcels TR MR TC MC MR-MC Profit 100 0 1150 90 50 1650 80 100 2150 70 150 2650 60 200 3150 50 250 3650 40 300 4150 30 350 4650 20 400 5150 10 450 5650 The Packages Market Price Packages TR MR TC MC MR-MC Profit 100 50 450 90 70 650 80 90 850 70 110 1050 60 130 1250 50 150 1450 40 170 1650 30 190 1850 20 210 2050 10 230 2250 What is the best pricing strategy? Demonstrate the difference in the profit from each strategy. $4800. a)Here are the customer preferences. Determine how much your net profit will increase with a single bundle price compared to the maximum net profit you would make with a high price strategy. Destination Resort Packages Cruise Casino Customer 1 $7,000 $3,000 Customer 2 $2,000 $6,000