You are serving as the chair for your community's annual wellness campaign. A key event is the annual Walk 3K, Run 10K, Ride 20K event. The event is staged entirely by volunteers and the goal is to attract community-wide awareness of getting active as a key step to wellness. In other words, the goal is not to raise money, but to prompt awareness. As the chair, you set a financial goal to break even on the one and only cost of the event, a fitness bag with the community seal and the event motto, "I AM ON THE RIGHT TRACK!"

The cost of the bags, which must be ordered in batches of 100, are;

Bags Fixed Cost Variable Cost. Total Cost Marginal Cost

0 $1,700 $- $1,700

100 $1,700 $500 $2,200

200 $1,700 $1,200 $2,900

300 $1,700 $2,700 $4,400

400 $1,700 $5,200 $6,900

500 $1,700 $9,000 $10,700

600 $1,700 $15,000 $16,700

700 $1,700 $23,800 $25,500

800 $1,700 $36,800 $38,500

900 $1,700 $55,800 $57,500

1,000 $1,700 $83,000 $84,700

Question2

Bags Fixed Cost Variable Cost Total Cost

0 $1,700 $- $1,700

100 $1,700 $500 $2,200

200 $1,700 $1,200 $2,900

300 $1,700 $2,700 $4,400

400 $1,700 $5,200 $6,900

500 $1,700 $9,000 $10,700

600 $1,700 $15,000 $16,700

700 $1,700 $23,800 $25,500

800 $1,700 $36,800 $38,500

900 $1,700 $55,800 $57,500

1000 $1,700 $83,000 $84,700

Given the above information on cost, if you charge $15 per entry, what is the breakeven quantity of bags that you should order? Orders must be placed in blocks of 100 bags.

Please select any/ all viable approaches below:

Use the profit maximizing rule, MR MC, buy 300 bags.

Use the profit maximizing rule, MR MC, buy 200 bags.

Use Qb = F/(MR-AVC) where Qb is the breakeven quantity to be determined, the optimal quantity of bags is 300.

Use Qb = F/(MR-AVC) where Qb is the breakeven quantity to be determined, the optimal quantity of bags is 200.

Question 3

Your marketing department just undertook a major advertising campaign promoting the quality of your Best Brand Bike ShortsBBB Shorts.

They have provided you with an estimate of the success of the campaign stating: "the price elasticity of demand has decreased from-5.76 to -3.76."

Before the campaign, your price was $240 per pair of BBB Shorts.What should the new price be?

Please enter the new price here: $

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