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Annie's Homemade Ice Cream is considering starting a Fan Club to grow Its revenues, particularly during the winter

months. Each member of the Fan Club would pay a monthly fee to obtain the following benefits:

One free t$-$shirt recelved at the time of enrollment. Each t$-$shirt costs Annle's $$9\mathrm{.}00.$

$2$ One free ice cream flight per month. Each flight conslsts of two$-$ounce servings of four flavors. Annle's cost per flight

$15$$$1\mathrm{.}60.$

Eligibility to spin the prize wheel after each Increment of $12$ servings purchased. Annle's estimates each member will

buy four servings of ice cream per month; therefore, being eligible to spin the prize wheel once every three months,

or four times a year. The average cost of each prize awarded when a fan club member spins the prize wheel is

$$5\mathrm{.}00.$

In addition, Annle's uses $$1\mathrm{.}00$ per member per month to "buy" Ice cream for $$5\mathrm{.}00$ per serving. The company then

donates the Ice cream purchased by fan club members to community organizations such as Big Brothers$/$Big Sisters,

public schools, and first responders. Annle's cost per pre$-$packaged, donated serving is $$1\mathrm{.}40.$

Annle's estimates customers who are not members of the fan club buy two servings of lce cream per month, whereas the

fan club's benefits motlvate loyal members to buy four servings per month. The price per serving and Ingredient cost per

serving are $$5\mathrm{.}00$ and $$1\mathrm{.}20,$ respectively.

The company is asking your recommendatlon whether it should charge members $$12$ per month $($or $$144$ for an annual

membership$)$ or $$10$ per morth $($or $$120$ for an annual membership$).$

Required:

Calculate the incremental revenue per member, per year under both pricing scenarios by completing the following table:

In addltion, Annle's uses $$1\mathrm{.}00$ per member per month to "buy" Ice cream for $$5\mathrm{.}00$ per serving. On an annual basis, this means

each member contrlbutes $$12$ that "buys" $2\mathrm{.}4$ servings of Ice cream per year. The company then donates the ice cream purchased

by fan club members to community organizations such as Big Brothers$/$Big Slsters, public schools, and first responders. Annle's cost

per pre$-$packaged, donated serving is $$1\mathrm{.}40.$ Calculate the incremental expense per member, per year by completing the following

table:

Calculate the incremental profit per member, per year under both pricing scenarlos by completing the following table:

If Annle's could attract $95$ fan club members at a price of $$12$ per month or $100$ members at a price of $$10$ per month, how much

additional profit $($loss$)$ does the $$12$ price provide when compared to the $$10$ price?

If Annle's could attract $100$ members at a price $$10$ per month, what is the fewest number of members the company could enroll at

$$12$ per month and still earn higher profits than the $$10$ scenarlo?

Complete this question by entering your answers in the tabs below.

Calculate the incremental revenue per member, per year under both pricing scenarios by completing the following table:

"Hint: Fan Club members buy two additional servings per month compared to non$-$member customers,