Different prices for the parcel and package service

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Reference no: EM133130801

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 crew 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 parcels market. 

Price

Parcels

TR

MR

TC

MC

MR-MC

Profit

100

0

0

 

1,150

 

 

 

90

 

4,500

90

1,650

10

80

2,850

 

100

8,000

70

2,150

10

60

5,850

70

150

10,500

50

2,650

10

40

7,850

60

200

12,000

30

3,150

10

20

 

50

 

12,500

10

3,650

10

0

8,850

 

300

12,000

-10

4,150

10

-20

7,850

30

350

10,500

-30

4,650

10

-40

 

20

 

8,000

-50

5,150

10

-60

2,850

 

450

4,500

-70

5,650

10

-80

-1,150

Reference no: EM133130801

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