need assistance

jsmith2007
feedbackfromquiz.docx
Home>Human Resource Management homework help>need assistance

· Question 1

16.8 out of 24 points

Partial Credit

You are serving as the chair for your community's annual wellness campaign. A key event is the annual Walk 3k, Run 10k, Ride 20k event. The event is staged entirely by volunteers and the goal is to attract community-wide awareness of getting active as a key step to wellness. In other words, the goal is not to raise money, but to prompt awareness. As the chair, you set a financial goal to break even on the one and only cost of the event, a fitness bag with the community seal and the event motto, “I AM ON THE RIGHT TRACK!”

The cost of the bags, which must be ordered in batches of 100, are:

Bags/Participants

Fixed Cost

Variable Cost

Total Cost

Marginal Cost

0

$1,700

$ -

$1,700

 

100

$1,700

$500

$2,200

[a]

200

$1,700

$1,200

$2,900

[b]

300

$1,700

$2,700

$4,400

[c]

400

$1,700

$5,200

$6,900

[d]

500

$1,700

$9,000

$10,700

[e]

600

$1,700

$15,000

$16,700

[f]

700

$1,700

$23,800

$25,500

[g]

800

$1,700

$36,800

$38,500

[h]

900

$1,700

$55,800

$57,500

[i]

1,000

$1,700

$83,000

$84,700

[j]

Specified Answer for: a

17

Specified Answer for: b

5

Specified Answer for: c

7

Specified Answer for: d

25

Specified Answer for: e

38

Specified Answer for: f

60

Specified Answer for: g

88

Specified Answer for: h

130

Specified Answer for: i

190

Specified Answer for: j

272

Response Feedback:

Your calculations were incorrect. You will have a second attempt on this quiz in week 8. There will be additional tutoring video feedback to assist you in understanding

· Question 2

24 out of 24 points

Correct

Bags/Participants

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 breakeven quantity of bags that you should order?  At what quantity of bags will profits be maximized?

Please select any/all viable approaches below: 

Selected Answers:

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.

Response Feedback:

Great work. Your calculation is correct. There were two true statements. You had to select both for full credit.

· Question 3

0 out of 23 points

Incorrect

Your Best Brand Bike Shorts - BBB Shorts have been flying off the shelf. Your chief economist tells you that during the Covid-19 pandemic, "the taste for bicycling has changed. The price elasticity of demand is much more inelastic. The price elasticity of demand has decreased from -5.76 to -2.70."

Before the campaign, your price was $240 per pair of BBB Shorts. What should the new price be?

Please enter the new price here: $ [a] Show only your answer in the box. Do not include steps in the box and do not add the dollar sign.

Selected Answer:

112.5

Response Feedback:

Your calculation was not identical to the correct answer. The instructional team will review your answer.

· Question 4

23 out of 23 points

Correct

Seven years ago, you started a crosstown delivery service. 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. Initially, you charged the same price for each service, but since the beginning of the Covid-19 pandemic, you have seen an increase in the demand for your package service. The demand for the package service seems to be more inelastic than the demand for parcels. You are now wondering if you should charge different prices for the parcel service and the package service, i.e. should you segment your market? Does segmentation increase profits?

Complete the table below for the combined market of parcels and packages.

Price

Parcels and Packages

TR

MR

TC

MC

MR-MC

Profit

[a]

50

5,000

 

1,600

 

 

3,400

90

[d]

10,800

83

2.300

10

73

8,500

80

190

15,200

63

3,000

10

53

[g]

[b]

260

18,200

43

3,700

10

33

14,500

60

[e]

19,800

23

4,400

10

13

15,400

50

400

20,000

3

5,100

10

-7

[h]

[c]

470

18,800

-17

5,800

10

-27

13,000

30

[f]

16,200

-37

6,500

10

-47

9,700

20

610

12,200

-57

7,200

10

-67

[i]

10

680

6,800

-77

7,900

10

-87

-1,100

Specified Answer for: a

100

Specified Answer for: d

120

Specified Answer for: g

12200

Specified Answer for: b

70

Specified Answer for: e

330

Specified Answer for: h

14900

Specified Answer for: c

40

Specified Answer for: f

540

Specified Answer for: i

5000

Response Feedback:

Great job on the calculations. You will use the information contained in these tables to complete question 7.

· Question 5

17.88888 out of 23 points

Partial Credit

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

 

 

[g]

90

[d]

4,500

90

1,650

10

80

2,850

[a]

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

[h]

50

[e]

12,500

10

3,650

10

0

8,850

[b]

300

12,000

-10

4,150

10

-20

7,850

30

350

10,500

-30

4,650

10

-40

[i]

20

[f]

8,000

-50

5,150

10

-60

2,850

[c]

450

4,500

-70

5,650

10

-80

-1,150

Specified Answer for: g

[None Given]

Specified Answer for: d

50

Specified Answer for: a

80

Specified Answer for: h

8850

Specified Answer for: e

250

Specified Answer for: b

40

Specified Answer for: i

8850

Specified Answer for: f

400

Specified Answer for: c

10

Response Feedback:

Some of your calculations were incorrect. However, the parts of the tables on which you must reply for answering question 7 are unaffected by the errors.

· Question 6

23 out of 23 points

Correct

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 packages market. 

Price

Packages

TR

MR

TC

MC

MR-MC

Profit

100

50

5,000

 

450

 

 

4,550

[a]

70

6,300

65

650

10

55

5,650

80

[d]

7,200

45

850

10

35

6,350

70

110

7,700

25

1,050

10

15

[g]

[b]

130

7,800

5

1,250

10

-5

6,550

50

[e]

7,500

-15

1,450

10

-25

6,050

40

170

6,800

-35

1,650

10

-45

[h]

[c]

190

5,700

-55

1,850

10

-65

3,850

20

[f]

4,200

-75

2,050

10

-85

[i]

10

230

2,300

-95

2,250

10

-105

50

Specified Answer for: a

90

Specified Answer for: d

90

Specified Answer for: g

6650

Specified Answer for: b

60

Specified Answer for: e

150

Specified Answer for: h

5150

Specified Answer for: c

30

Specified Answer for: f

210

Specified Answer for: i

2150

Response Feedback:

Great job on the calculations. You will use the information contained in these tables to complete question 7.

· Question 7

0 out of 24 points

Incorrect

Should the delivery service charge one price or will segmentation increase profits?  Support your conclusion using the profits calculated in Questions 4, 5, & 6.  Determine the maximum profit for the combined market, i.e. 1 price for both services, and show the maximum profit if the market is segmented into sub-markets for parcels and packages, charging 2 differnt prices.

Selected Answer:

· Previous research has shown that demand in the packaging sector is inelastic. This shows that price changes have little effect on package demand. As a result, if the price rises, the quantity required does not fall much. According to the data presented, prices fall as demand increases. Demand growth, on the other hand, is less strong, as indicated by negative marginal income values. As a consequence, income does not grow much. However, there is no rise in profit, but rather a reduction in profit that continues to decline with time. Prices may rise in a number of different sectors if the market is split. Higher revenue equals increased earnings and profits.

Response Feedback:

Incorrect approach.

Support your conclusion using the profits calculated in Questions 4, 5, & 6.  Determine the maximum profit for the combined market, i.e. 1 price for both services, and show the maximum profit if the market is segmented into sub-markets for parcels and packages, charging 2 differnt prices.

· Question 8

23 out of 23 points

Correct

You operate a Caribbean destination resort. You currently offer plans for a cruise departing from the resort and plans for a casino stay. It is expected that in 2021 there will be some return to more normal travel. You will re-launch your advertising for 2021 announcing that customers will be able to do both for one price.  Your marginal cost per customer is $4800.

Customer Preferences

 

Cruise

Casino

Customer 1

$7,000

$3,000

Customer 2

$2,000

$6,000

Given the preferences, would bundling  improve profits  over the high-cost strategy?  Support your conclusion by showing if (by how much) profits differ under each strategy, bundle versus high price.

Selected Answer:

If the trip is, of course, independently assessed, the costs might be set at $7000; in this scenario, customer 1 would benefit. Furthermore, if the casino cost is evaluated individually, we may determine a profit of $6000 for lone Customer 1. When we do an unbiased assessment;

Expense= $4800×2= $9600

Income = $7000+$6000 = $13000

 

Total Net Income= $13000- $9600 =$3400

Packaged together, the cruise and casino are used to pay Clients 1 and 2.

Client2= $2000+$6000= $8000

Client1= $7000+$3000= $10000

For example, if one customer makes $8000, the total revenue of both customers is $8000*2, while the combined cost is $4800*2.

As a consequence, both customers' net income would be equal to $16,000 minus $9600, or $6400. As a consequence, bundling generates a higher profit margin than the high-price strategy.

Response Feedback:

Correct.

· Question 9

0 out of 23 points

Incorrect

Follow up question (note that the dollar amounts have not changed from the previous scenario.)

You operate a Caribbean destination resort. You currently offer plans for a cruise departing from the resort and plans for a casino stay. It is expected that in 2021 there will be some return to more normal travel. You will re-launch your advertising for 2021 announcing that customers will be able to do both for one price. Your marginal cost per customer is $4800.

Customer Preferences

 

Cruise

Casino

Customer 1

$7,000

$3,000

Customer 2

$2,000

$6,000

You know that about 21% of your customers decline cruises because of seasickness. At least 12% decline the casino trip saying they don't believe in gambling. As a rough approximation, you estimate that approximately 33% of your customers will never bundle. Given the preferences distribution, will the mixed bundling  increase profits?  You must show the calculations that support your conclusion.

Selected Answer:

According to this scenario, if 21% of customers cancel their cruises, it means that 79% of consumers are ready to go on a cruise holiday.

 Furthermore, even if 12% of consumers cancel their casino visit, the remaining 88% will continue to frequent the business. 

Furthermore, if 33% of consumers do not trust gaming, 67 percent of customers will buy a service package.

For customer 1, the cost without bundling is as follows: - = (70000*0.79) + (30000*0.88) = $8170.

Costs associated with bundling:

- = (7000+3000) = (7000+3000)

6700 divided by 0.67 = 6700

For Customer 2, the cost without bundling is as follows:

- = (20000.79) + (60000.88) = $6860 - = (20000.79) + (60000.88) = $6860

When you bundle, the cost is - = (2000+6000)0.67 = $5360.

As a result, the total cost without bundling is equal to (8170+6860) = $15030.

 When you bundle your purchases, your total cost is (6700+5360) = $12060.

 In this case, the difference is equal to (15030-12060) = $2970.

As a result of bundling, the total cost will be reduced by $2970.

Response Feedback:

Incorrect approach.