You are a marketing manager at a purse retailer. Last year you sold 1,300 purses at a price of $430 per purse. Your fixed costs are $50,000 and it costs you $110 to make each purse.

Calculate: Total revenue, average revenue, total cost, and unit variable cost. Did you make a profit last year? How much?

You are deciding whether or not to participate in a national association of Purse parties, where all the attendees have to purchase your purse. Each party will cost you $1500. The expected number of attendees for each party is 30 women. You are also required by your boss to make a profit of at least $8000 by participating in each party.

Should you participate? Why or why not?