Homework answers / question archive / 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 1,000 $1,700 $83,000 $84,700 Given the above information on cost, if you charge $15 per entry, what is the the break even quantity of bags?  At what quantity of bags will profits be maximized?  

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 1,000 $1,700 $83,000 $84,700 Given the above information on cost, if you charge $15 per entry, what is the the break even quantity of bags?  At what quantity of bags will profits be maximized?  

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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

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

Given the above information on cost, if you charge $15 per entry, what is the the break even quantity of bags?  At what quantity of bags will profits be maximized?  .

Please select any/all viable approaches 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 can not be determined in this case.