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 thethe 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 Qbis the break even quantity, the event would break even at 283 bags>

Usingthe profit maximizing rule, MR MC, the quantity of bags that will maximize profits is 200 bags.

Usingthe profit maximizing rule, MR MC, thequantity of bags that will maximize profits is 300 bags.

The break even quantity can not be determined in this case.