Given the above information on cost, if you charge $15 per entry, what is the breakeven quantity of bags that you should order? At what quantity of bags will profits be maximized? Please select any/all correct responses below: Using Qb = F/(MR - AVC) where Qb is the break even quantity, the event would break even at 283 bags. Using the profit-maximizing rule, MR ≥ MC, the quantity of bags that will maximize profits is 200 bags. Using the profit-maximizing rule, MR > MC, the quantity of bags that will maximize profits is 300 bags. The break even quantity cannot be determined in this case.
|
ipants |
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 |
|
1,000 |
$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? At what quantity of bags will profits be maximized?
Please select any/all correct responses below:
|
Using Qb = F/(MR - |
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|
Using the profit-maximizing rule, MR ≥ MC, the quantity of bags that will maximize profits is 200 bags. |
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|
Using the profit-maximizing rule, MR > MC, the quantity of bags that will maximize profits is 300 bags. |
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The break even quantity cannot be determined in this case. |
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