This senerio goes with all three 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. Should the delivery service charge one price or will segmentation increase profits? Support your conclusion by calculating the profit from each strategy provided in Questions 4, 5, & 6. Question4 profits Price 100 90 80 Parcels and Packages 50 120 190 260 70 60 50 330 400 470 40 30 20 10 540 610 680 TR 5,000 10,800 15,200 18,200 19,800 20,000 18,800 16,200 12,200 6,800 MR 83 63 43 23 3 -17 -37 -57 -77 TC 1,600 2,300 3,000 3,700 4,400 5,100 5,800 6,500 7,200 7,900 MC MR-MC 10 10 10 10 10 10 10 10 10 73 53 33 13 -7 -27 -47 -67 -87 Profit 3,400 8,500 12200 14,500 15,400 14900 13,000 9,700 5000 -1,100 Question 5 profits Price 100 90 80 70 60 50 40 30 20 10 Parcels 0 50 100 150 200 250 300 350 400 450 TR 0 4,500 8,000 10,500 12,000 12,500 12,000 10,500 8,000 4,500 MR 90 70 50 30 10 -10 -30 -50 -70 TC 1,150 1,650 2,150 2,650 3,150 3,650 4,150 4,650 5,150 5,650 MC MR-MC Profit -1,150 10 10 10 10 10 10 10 10 10 80 60 40 20 0 -20 -40 -60 -80 2,850 5,850 7,850 8850 8850 7850 5850 2850 -1,150 Question 6 profits Price 100 90 80 70 60 50 40 30 20 10 Packages 50 70 90 110 130 150 170 190 210 230 TR 5,000 6,300 7,200 7,700 7,800 7,500 6,800 5,700 4,200 2,300 MR 65 45 25 5 -15 -35 -55 -75 -95 TC 450 650 850 1,050 1,250 1,450 1,650 1,850 2,050 2,250 MC MR-MC 10 10 10 10 10 10 10 10 10 55 35 15 -5 -25 -45 -65 -85 -105 Profit 4,550 5,650 6,350 6650 6,550 6,050 5150 3,850 2150 50