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3) 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 weighting 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 tables below and determine the best price strategy: price the services differently in each segment; or continue the one price policy? Combined Parcels & Packages Price TR MR TC MR-MC Profit Parcels and Packages 100 120 50 190 260 330 400 470 540 M C 1600 2300 3000 3700 4400 5100 5800 6500 7200 7900 610 680 The Parcels Market Price MR TC M R-MC Profit 100 90 Parcels TR 0 50 100 150 200 250 MC 1150 1650 2150 2650 3150 3650 300 350 400 4150 4650 5150 5650 450 The Packages Market Price Packages TR MR TC MR-MC Profit 100 50 70 90 110 130 MC 1150 1650 2150 2650 3150 3650 4150 4650 5150 5650 150 170 190 210 230 What is the best pricing strategy? Demonstrate the difference in the profit from each strategy

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