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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
(Breakeven Analysis, Optimal Pricing with Capacity Constraints) Greentown Industries sells its transport services at a range of prices to five different customer groups. The company has fixed costs of $150,000 per year. The average variable costs for each transport service, irrespective of customer group, are $7 per service. The table below shows the prices charged to each customer group and the quantity of transport services that are currently sold at that price.
|
Customer Group |
Selling Price |
Quantity |
|
Multinational |
$19 |
13,000 |
|
Corporate |
$20 |
12,500 |
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