A local private golf club has two types of customers, serious and occasional golfers. The demand...

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A local private golf club has two types of customers, "serious" and "occasional" golfers. The demand for annual rounds of golf (Q) for each type of golfer is given by the following equations, where P is the price per round of golf (see corresponding demand curves in graph to the right): Serious: Q 105-1.4P Occasional: Q = 88 -1.6P Use the equations to answer the questions below for each of two scenarios: 1) Serious Golfers Only, and 2) Both Types of Golfers. For each scenario, the club wants to determine the optimal two-part tariff to charge, which would consist of an annual membership (i.e. entry) fee and a price (usage fee) for each round of golf. NOTE: Assume (for any golfer) the club incurs a constant marginal cost (and also, therefore, average variable cost) of $10 for each round of golf. NOTE: The reservation price (i.e. vertical intercept) is $75 for "Serious" golfers and $55 for "Occasional" golfers (see the demand curves in graph to the right). Use these values as needed throughout the problem. Serious Golfers Only (Scenario 1): The club limits membership to "serious" golfers. a. What would be the usage fee (i.e. How much would the club charge for each round of golf)? b. Enter a formula to calculate the annual membership (entry) fee charged to each golfer. NOTE: You may need to use cells to the side to calculate intermediate results. NOTE: Round all price and quantity figures to whole numbers. c. If there are 100 "serious" golfers, enter a formula to calculate the club's profit from limiting membership to just this group of golfers. NOTE: Assume there are no fixed costs. NOTE: Round to the nearest dollar. P 80.00 70.00 60.00 50.00 40.00 Demand: Serious and Occasional Golfers Serious Golfers 30.00 Occasional Golfers 20.00 10.00 0.00 0 20 40 60 80 100 Both Types of Golfers (Scenario 2): The club opens membership to both types of golfers, which means charging an annual membership (entry) fee and price (usage fee) that would attract both types of golfers. d. What would be the usage fee (i.e. How much would the club charge for each round of golf)? NOTE: You may need to use cells to the side to calculate intermediate results. NOTE: Round all price and quantity figures to whole numbers. e. Enter a formula to calculate the annual membership (entry) fee charged to each golfer. NOTE: You may need to use cells to the side to calculate intermediate results. NOTE: Round all price and quantity figures to whole numbers. f. In addition to the 100 "serious" golfers (from Scenario 1), the club projects it could additionally attract another 120 "occasional" golfers in this scenario. Enter a formula to calculate the club's profit in this case. NOTE: Assume there are no fixed costs. NOTE: You may need to use cells to the side to calculate intermediate results. NOTE: Round all price and quantity figures to whole numbers. A local private golf club has two types of customers, "serious" and "occasional" golfers. The demand for annual rounds of golf (Q) for each type of golfer is given by the following equations, where P is the price per round of golf (see corresponding demand curves in graph to the right): Serious: Q 105-1.4P Occasional: Q = 88 -1.6P Use the equations to answer the questions below for each of two scenarios: 1) Serious Golfers Only, and 2) Both Types of Golfers. For each scenario, the club wants to determine the optimal two-part tariff to charge, which would consist of an annual membership (i.e. entry) fee and a price (usage fee) for each round of golf. NOTE: Assume (for any golfer) the club incurs a constant marginal cost (and also, therefore, average variable cost) of $10 for each round of golf. NOTE: The reservation price (i.e. vertical intercept) is $75 for "Serious" golfers and $55 for "Occasional" golfers (see the demand curves in graph to the right). Use these values as needed throughout the problem. Serious Golfers Only (Scenario 1): The club limits membership to "serious" golfers. a. What would be the usage fee (i.e. How much would the club charge for each round of golf)? b. Enter a formula to calculate the annual membership (entry) fee charged to each golfer. NOTE: You may need to use cells to the side to calculate intermediate results. NOTE: Round all price and quantity figures to whole numbers. c. If there are 100 "serious" golfers, enter a formula to calculate the club's profit from limiting membership to just this group of golfers. NOTE: Assume there are no fixed costs. NOTE: Round to the nearest dollar. P 80.00 70.00 60.00 50.00 40.00 Demand: Serious and Occasional Golfers Serious Golfers 30.00 Occasional Golfers 20.00 10.00 0.00 0 20 40 60 80 100 Both Types of Golfers (Scenario 2): The club opens membership to both types of golfers, which means charging an annual membership (entry) fee and price (usage fee) that would attract both types of golfers. d. What would be the usage fee (i.e. How much would the club charge for each round of golf)? NOTE: You may need to use cells to the side to calculate intermediate results. NOTE: Round all price and quantity figures to whole numbers. e. Enter a formula to calculate the annual membership (entry) fee charged to each golfer. NOTE: You may need to use cells to the side to calculate intermediate results. NOTE: Round all price and quantity figures to whole numbers. f. In addition to the 100 "serious" golfers (from Scenario 1), the club projects it could additionally attract another 120 "occasional" golfers in this scenario. Enter a formula to calculate the club's profit in this case. NOTE: Assume there are no fixed costs. NOTE: You may need to use cells to the side to calculate intermediate results. NOTE: Round all price and quantity figures to whole numbers.