Help me study for my Economics class. I’m stuck and don’t understand.
I would attached the quiz but here the first three questions
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 |
||||
|
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 |
|||||
|
Bags |
Fixed Cost |
Variable Cost |
Total 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 |
$83,00 |
$84,700 |
|||||
2. 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-MC) where Qb is the breakeven quantity to be determined, the optimal quantity of bags is 300. |
|
|
|
Use Qb = F/(MR-MC) where Qb is the breakeven quantity to be determined, the optimal quantity of bags is 200. |
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