Should the delivery service charge one price or will segmentation increase profits?Support your conclusion using the profits calculated in Questions 4, 5, & 6.Show the total profit for the combined market with 1 price and show the total profit if you segment the market into sub-markets of parcels and packages charging 2 different prices.
The questions are attached as jpg files
Seven years ago] you started a crosstown delivery service. You have two types of service. You have a small parcel service tor anything that is flat and measures less than 11x1?. You have a package service using a 100 lb. capacity bike trailertor anything weighing up to 10 lbs. initially, you charged the same price for each service, but since the beginning of the Covid-19 pandemic, you have seen an increase in the demand for your package service. The demand for the package service seems to be more inelastic than the demand for parcels. You are now wondeting if you should charge different prices for the parcel service and the package service, i.e. should you segment your market? Does segmentation increase prots? Complete the table below for the combined market of parcels and packages. Parcels and Packages MR- MC 26C] I_I I_I |_| 20 510 12,200 1 1t] 45? _ggg 10 BED 6,800 7900 1D Seven years age you started a crosstown delivery service. The service is an environmentally friendly business and] given all the trafc congestionr 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 at and measures less than 11x1?. 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. Parcels TC llllR- Prot llllC 0 100 --HIH Ellm 10 500 50 2 650 40 7" 350 :m__._-E |_| "IW gum"\" 10000 00 0000 00 8000 5 5150 2,859 I_I=0 le'm aeven years ago, you Started a crosstown oeuvery service. Ine service Is an environmentally menoiy ousaness ano, given all the trafc 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 at and measures less than 11x17. You have a package service using a mo It). capacity bike trailer for anything weighing up to 1t] 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 pnces for the parcel and package service. Complete the table below for the packages market. Packages
