Pricing data set is number 5 of the attached pricing tool assignment.

Pricing Data set is Number 5 of the attached pricing tool assignment.  The pricing tool is also attached along with a PowerPoint example. 

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My data set: 

5

14,000.00

$23.00

23,000.00

$5.00

$0.50

$7.00

$70,000.00

PLEASE VIEW ALL ATTACHED DOCUMENTS AND READ INSTRUCTIONS CAREFULLY! 

You will create a BASE CASE for this assignment by inserting your personal 5 data points (2 points on the demand curve [Q1-P1; Q2-P2], a price increment, variable cost, and fixed cost) found on your Excel Pricing CD and associated with your individual “Virtual Class Roster Number” (the number associated with the last name alphabetical order of class members) to perform a pricing analysis assignment to ascertain an appropriate price for a hypothetical product. A pricing analysis example can be found on the PowerPoint slides at the following links. Your faculty member will provide you with your individual 5 item data set.

PDF Icon Excel Pricing Tool

Modified Breakeven Analysis

The prices in rows 34–37 and column E and F (P3–P6) in your Excel Pricing Tool are not associated with product demand and are not related to other spreadsheet calculations. These numbers are not to be used in this assignment.

NOTEYour Excel Spreadsheet Pricing Tool for this assignment is on the CD packaged with your textbook.

SECTION #1:

You will employ your data set and the spreadsheet to determine and discuss the issues in this section. The incorporation of your data set into the spreadsheet represents the hypothetical demand of a brand or firm in the firm’s final consumer marketplace. You can envision your BASE CASE as the current point in time whereas each of the other Scenarios can be viewed as future points in time. The BASE CASE and each Scenario has a different demand curve and a separate profit maximizing point. Your spreadsheet with your original data set should be embedded in your assignment document.

  1. [BASE CASE> 
  • FIRST QUESTION SET
  • Determine an approximate profit maximizing price from your spreadsheet.
  • Determine the price/quantity point of the profit maximizing price on the demand curve.
  • Determine revenue, variable costs, and total cost at the profit maximizing price.
  • Determine the elasticity of demand at the profit maximizing price and discuss the meaning and importance of price elasticity.
  • SECOND QUESTION SET
  • Describe the affect of changes in fixed cost on the profit maximizing point profit, revenue, and elasticity at the point of maximum profit.
  • Describe the affect of changes in unit variable cost on the profit maximizing point, profit, revenue, and elasticity at the point of maximum profit.
  • Describe what happens to the elasticity of demand and the relationship between profit and revenue when price is decreased from the profit maximizing point through the revenue maximizing point by movement along the original demand curve.
  • Future Scenarios 
    Describe what happens to the profit maximizing price revenue, profit, and demand elasticity at the BASE CASE profit maximizing point when changes occur (if they occur) as you transition from the “BASE CASE” to each of the next 3 scenarios (spreadsheet copies of these activities should be embedded in your assignment document). Also, briefly describe the demand in a marketplace in which each of the following occurs. 
    • [Scenario #1] Decrease the “absolute value” of the slope of the BASE CASE demand curve by changing only one point [decrease the slope of your demand curve by increasing Q1 or Q2 by 1,000].
    • [Scenario #2] Increase demand [quantity] at each point on the original demand curve of the BASE CASE by creating a demand curve parallel to the original demand line—slope remains the same [add 1,000 to Q1 and Q2].
    • [Scenario #3] Decrease demand [quantity] at each point on the original demand curve of the BASE CASE by creating a demand curve parallel to the original demand line—slope remains the same [subtract 1,000 from Q1 and Q2].
  • At a minimum embed your four Excel spreadsheets in a readable format into your report.
  • In your executive summary you will provide a table that includes the following:

    Q1 : P1

    Q2 : P2

    Price @ Max. Profit

    Max. Profit

    Revenue @ Max. Profit

    Quantity @ Max. Profit

    Elasticity @ Max. Profit

    BASE CASE

               

    Scenario #1

               

    Scenario #2

               

    Scenario #3

               

    SECTION #2:

    1. If your demand forecasting statistics were obtained from a final consumer market, briefly describe what affect a channel of distribution will have on a manufacturer’s “profit maximizing” price, and –
    2. Discuss the potential impact of competitive price activity on the profit maximizing price you selected the BASE CASE above.

    You will develop a five to six page double-spaced (NOT including spreadsheets and charts) report discussing the results noted from your modified breakeven spreadsheet and charts.

    When incorporating excel spreadsheets in word documents and being able to “size” the resulting tables appropriately, one way is to select the area of the spreadsheet comprising the data in question “using the mouse,” copy that highlighted area to the clipboard, paste that data into a blank PowerPoint slide, copy that representation of the spreadsheet onto the clipboard, and now past the clipboard data into a Word document. The use of photographic/image software will work as well.

    A PDF as an end-product is the best form for submission.

    ALL PAPERS WILL INCLUDE YOUR NAME, NUMBERED PAGES, A PAGE HEADER, QUESTION/TOPIC SUBHEADINGS, AND A SHORT EXECUTIVE SUMMARY.

    Your pricing analysis report will be posted as either an Adobe (PDF) or a Word Document to the Drop Box by Day 7 of Week 8including supporting calculations and graphical documents by Sunday at midnight. Only 4 spreadsheets (BASE CASE and Scenarios 1–3) need to be incorporated into your final document. All pages submitted will be LETTER size (8 1/2″ x 11″).