10 Jul BagsFixed CostVariable CostTotal Cost0$1,700$ -$1,700100$1,700$50
BagsFixed CostVariable CostTotal Cost0$1,700$ -$1,700100$1,700$500$2,200200$1,700$1,200$2,900300$1,700$2,700$4,400400$1,700$5,200$6,900500$1,700$9,000$10,700600$1,700$15,000$16,700700$1,700$23,800$25,500800$1,700$36,800$38,500900$1,700$55,800$57,5001,000$1,700$83,000$84,700Given the above information on cost, if you charge $15 per entry, what is the breakeven quantity of bags that you should order? Orders must be placed in blocks of 100 bags.Please select any/all viable approaches below: Use the profit maximizing rule, MR ≥ MC, buy 300 bags.Use the profit maximizing rule, MR ≥ MC, buy 200 bags.Use Qb = F/(MR-AVC) where Qb is the breakeven quantity to be determined, the optimal quantity of bags is 300.Use Qb = F/(MR-AVC) where Qb is the breakeven quantity to be determined, the optimal quantity of bags is 200.Problem Set attached
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