A wine bar entrepreneur sells cases of her private-label wine for $335 per case.For an annual fee of $300, customers may also choose to enroll in a WineAppreciation Club, which o????ers private tastings and entitles members to buy casesof wine for $200. What is the minimum number of cases a club member need topurchase for the membership to be economically advantageous?

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Parrain Parrain · Answer 1 · 2021-05-15T04:55:54+02:00

Answer: 3 cases

Explanation:

The entrepreneur charges $335 per case but members of the Wine Appreciation club can buy the cases for $200 if they pay an annual fee of $300.

The saving made by the members of the club is:

= 335 - 200

= $135 per case

Considering that they spend $300 on fees, the amount of cases that would give them a savings of more than this amount is:

= 300 / 135

= 2.22 cases

= 3 cases (rounded up)

At 3 cases they would make savings of:

= 3 * 135

= $405

This is more than the fee paid.