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 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]
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 |
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] |
Marginal is termed as the additional cost incurred for extra unit of commodity. It can be ascertained as:
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