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5. Seven years ago, you started a crosstown delivery service. The service is an environmentally friendly business and, given all the traffic congestion, you are
5. Seven years ago, you started a crosstown delivery service. The service is an environmentally friendly business and, given all the traffic congestion, you are also the fastest service in the city since your entire crew are bicyclists. You have two types of service. 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 weighing up to 10 lbs. As a way to introduce the new package service when you implemented the small package service, you charged the same price for packages as parcels. You are now wondering if you should charge different prices for the parcel and package service. Complete the table below for the parcels market. Price Parcels and TR MR TC MC MR- Profit Packages MC 100 0 0 1,150 90 4.500 90 1,650 10 80 2.850 100 8,000 70 2,150 10 60 5,850 70 150 10,500 50 2,650 10 40 7,850 60 200 12,000 30 3.150 10 20 50 12,500 10 3,650 10 0 8850 300 12,000 -10 4,150 10 -20 7850 30 350 10,500 -30 4,650 10 -40 20 8.000 -50 5,150 10 -60 2850 450 4.500 -70 5,650 10 -80 -1,150
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