Charge different prices for the parcel and package service

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Reference no: EM133128317

Seven years ago, you started a crosstown delivery service. The service is an environmentally friendly business and, given all the traffic congestion, you are also the fastest service in the city since your entire crews are bicyclists. You have two types of service. You have a small parcel service for anything that is flat and measures less than 11x17. You have a package service using a 100 lb. capacity bike trailer for anything weighing up to 10 lbs. As a way to introduce the new package service when you implemented the small package service, you charged the same price for packages as parcels.  You are now wondering if you should charge different prices for the parcel and package service.

Complete the table below for the packages market. 

Price

Packages

TR

MR

TC

MC

MR-MC

Profit

100

50

5,000

 

450

 

 

4,550

 

70

6,300

65

650

10

55

5,650

80

 

7,200

45

850

10

35

6,350

70

110

7,700

25

1,050

10

15

 

 

130

7,800

5

1,250

10

-5

6,550

50

 

7,500

-15

1,450

10

-25       

6,050

40

170

6,800

-35

1,650

10

-45

 

 

190

5,700

-55

1,850

10

-65

3,850

20

 

4,200

-75

2,050

10

-85

 

10

230

2,300

-95

2,250

10

-105

50

Reference no: EM133128317

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