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Viable approaches
| 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. |
24 points