roblem Set 1: Computing Total Cost, Average Variable Cost, Marginal Cost, Total Revenue wt price $15, and Marginal Revenue. 1) 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 breakeven on the one and only cost of the event, a fitness bag with the community seal and the event moto, “I AM ON THE RIGHT TRACK! The cost of the bags, which must be ordered in batches of 100, are: Bags FC VC TC AVC MC TR Price $15 MR 0 1700 0 100 1700 500 200 1700 1200 300 1700 2700 400 1700 5200 500 1700 9000 600 1700 15000 700 1700 23800 800 1700 36800 900 1700 55800 1000 1700 83000 a) Complete the table. If this was a profit-making activity, at the entry fee of $15, what would be the profit maximizing quantity of bags. b) You will charge an entry fee of $15 p
Problem Set 1: Computing Total Cost,
1) 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 breakeven on the one and only cost of the event, a fitness bag with the community seal and the event moto, “I AM ON THE RIGHT TRACK!
The cost of the bags, which must be ordered in batches of 100, are:
Bags FC VC TC AVC MC TR Price $15 MR
0 1700 0
100 1700 500
200 1700 1200
300 1700 2700
400 1700 5200
500 1700 9000
600 1700 15000
700 1700 23800
800 1700 36800
900 1700 55800
1000 1700 83000
a) Complete the table. If this was a profit-making activity, at the entry fee of $15, what would be the profit maximizing quantity of bags.
b) You will charge an entry fee of $15 per participant. Determine the breakeven quantity of bags.
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