Westfield Tennis and Fitness Club has 12 indoor tennis courts available to its members, 16 hours per day, 7 days per week. The Club rents court time to its members for $25/hour.

An economics consultant has noted that the demands for court time differs between two types of members. Half of the club's 400 members are "fitness" members, who play tennis no more than three hours per week, irrespective of the price of court rental, but who will play fewer than 3 hours per week if the price of court rental is higher than $25/hour.

The rest of the club's members (200) are 'competitive' tennis players, who will play six or seven days per week depending on the price of court rental.

The demands for court time by fitness players and competitive players were estimated by the economics consultant as

As the courts are available, and must be maintained whether used or not, the marginal cost of providing another hour of court time is zero.

Westfield is a private, profit-oriented enterprise.

The economics consultant has advised Westfield to lower the price of court time for those members willing to pay a "premium member" fee each week. The consultant agrees that a price of zero for court time would be "unfair" to the 'regular' members, and recommends a price of $10 per court hour be charged to those who pay the weekly "premium member" fee.

If the weekly "premium" fee is set at$40, how much revenue will Westfield earn from fees plus court rentals? Note that, at most, 200 members (100 fitness members and 100 competitive members--a court needs to be rented by only ONE player, how that player and his/her opponent splits the rental fee is immaterial to the club) rent courts at these prices?

(Hint: Determine how much court time is rented by ONE fitness player and ONE competitive player at those prices. Determine the total weekly revenue from one player of each type, including 'premium member' fee if this is (voluntarily) paid. Then multiply this revenue by 100 PAIRS of court-renting members.)

Question 1 options:

1)

Total revenue from court rental and fees is no greater than $14,000/week

2)

Total revenue from court rental and fees is more than $14,000 week but no greater than $16,000/week

3)

Total revenue from court rental and fees is more than $16,000 week but no greater than $18,000/week

4)

Total revenue from court rental and fees is more than $18,000 week but no greater than $20,000/week

5)

Total revenue from court rental and fees is more than $20,000 week