You Are Serving As The Chair For Your Community's Annual Wel

You Are Serving As The Chair For Your Communitys Annual Wellness

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 provided with fixed costs, variable costs, and total costs at different production quantities.

Given the cost data and a ticket price of $15 per entry, you are asked to determine the breakeven quantity of bags to order. Orders must be placed in blocks of 100 bags. You are to select any viable approach, including profit-maximizing rules and specific formulas provided, to find the optimal order quantity.

Additionally, your marketing department has reported a decrease in the price elasticity of demand for BBB Shorts from -5.76 to -3.76 after an advertising campaign. You are asked to calculate the new optimal price per pair, given the previous price of $240.

You also operate a crosstown delivery service with two services: a small parcel service and a package service using a 100 lb capacity bike trailer. You need to analyze whether to charge different prices for these services based on the total revenue, marginal revenue, total cost, marginal cost, profit, and the potential benefits of segmentation.

Furthermore, you are evaluating whether bundling services such as cruises and casino stays can boost profits. Based on customer preferences, costs, and potential customer aversion percentages, you are to analyze if bundling, or mixed bundling, will increase profits compared to separate services.

This comprehensive analysis aims to optimize event planning, pricing strategies, service differentiation, and bundling approaches for maximum community impact and financial efficiency.