Heres what we know:

Derek will sign 1000 items, but limits the number of types of items he will sign up to:

650 Photos

400 Baseballs

100 Jerseys

At signings in the past, Charlie has sold:

Between 400-625 Photos

Between 300-400 Baseballs

Between 80-100 Jerseys

Costs:

Dereks signing fee $40,000

Dereks travel costs $1,000

Photos cost: $4 each

Baseballs cost: $10 each

Jerseys cost: $55 each

Charlie recommended markups on items:

Markup Photos by 25%

Markup Baseballs by 40%

Markup Jerseys by 85%

One of Charlies earliest business ventures in the trading card business involved organizing local signing events for popular pro athletes. In the past he has hosted signing events by many big names in sports, including baseball players like Yogi Berra, Ted Williams, and Hank Aaron; he even hosted prizefighter Joe Frazier. Some of the signings made a good return, while others did not cover the costs involved in hosting the signing.

Charlie and The 7th Inning try to host at least one autograph session with a major sports figure each year. This year, he wants to bring Derek Jeter of the New York Yankees to Memphis for an autograph session. The going rate to bring a player of Dereks stature to a signing is $40,000 plus travel costs. For this fee, the athlete will spend around 46 hours at The 7th Inning and sign 1,000 items including photographs, baseballs, and reproduction jerseys. There is a bit of a hitch: the athlete usually specifies the maximum number of each item that he will sign. In this case, Derek will agree to sign up to 650 photos, 400 baseballs, and 100 jerseys. Charlie wants Joe and Sharese to help him figure out how many of each item they should have Derek sign in order to make the greatest potential profit overall and how much net profit they can make on the signing over costs, if they sell all of the items.

a. Calculate the retail price for each item by completing the following table. Item Cost of Item Cost of Item Including Autograph Cost Recommended Markup Retail Price After Markup 8 x 10 Photographs Baseballs Jerseys 4. Calculate the gross profit and the net profit for a variety of order combination options that Joe could order. Assume that all items are sold. Create your own option of sales and complete the following table. Number of Items Cost Gross Profit Net Profit Photographs Baseballs Jerseys Travel Costs $1,000 Total 1000