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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
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 Ib. 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 service. wondering if you should charge different prices for the parcel and package Complete the table below for the packages market. Price Packages TR MR TC MC MR-MC Profit 100 50 5,000 450 4,550 70 6,300 65 650 10 55 5,650 80 7,200 45 850 10 35 6,350 70 110 7,700 |25 1,050 10 15 130 7,800 5 1,250 10 -5 6,550 50 7,500 -15 1,450 10 -25 6,050 40 170 6,800 -35 1,650 10 -45 190 5,700 -55 1,850 10 -65 3,850 20 4,200 -75 2,050 10 -85 10 230 2,300 -95 2,250 10 -105 50 Should the delivery service charge one price or will segmentation increase profits? Support your conclusion using the profits calculated in Questions 4, 5 , & 6
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