P2_FINAL_GROUP2_Calculation_date

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May 1, 2024

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Revised on 1/29/2024 Largo Global Inc. is a fictious firm that is will be used to allow you to understand the market force impact a company as well as the industry in which the company operates. The company produce box and a Deluxe box. These boxes are also produced by many other companies. In Project 2, you will learn about how to apply the tenets of microeconomics to improve the compa reading the instructions, you will chart the supply and demand curves for the two different boxes. I elasticity of demand for these two products. In tab 3 you will determine at what price the company both boxes. Project 2 is the team assignment in MBA 620. Follow these steps to complete the project: 1. In step 3 the team will complete their Team Agreement and Work Plan and submit it to their noted by their faculty member. 1. In step 4, the team will complete this Excel file by answering the questions for all three tabs of the team will submit this file to the Project 2 Milestone assignment folder by the stated due date faculty member. Upon receipt of the feedback, the team will coordinate any necessary corrections. 2. In step 5, each team member must answer all questions for two of the five topics provided i constitute the core of your team's report. Each team member will serve as the team’s primary resp coordinate the answers for that topic. Each team member will also serve as the secondary respond submit their answers to the primary respondent. a. The faculty member will create a separate Team Project 2 Discussion forum for each tea team members should prepare their answers to the questions for their two chosen topics as separa two files in the appropriate topics in the Team Project 2 Discussion forum. b. After coordinating with the other members of the team, the primary respondent for ea the editor of the team’s Word file. The editor will then consolidate the answers to the questions fo and submit that file along with the team's revised Excel file to the Project 2 Final assignment folder c. If the team does not receive a grade of Meets Requirements or Exceeds Requirements, coordinate any necessary changes to the answers for their topic questions and resubmit them to th consolidate all changes to the Word file and resubmit the file along with the team's Excel file to the
es of supply and demand as they es two types of boxes, a Standard any's profitability. In tab 1 after In tab 2 you will focus on the price y can maximize the profitability of r faculty member by the due date in the boxes provided. One member e to receive feedback from their . in the Word file. These questions pondent for one of the five topics and dent to one of the five topics and am which includes all five topics. All ate Word files. They should post their ach topic will submit their answers to or all five topics in a single Word file r. the primary respondents will he editor. The editor will then e Project 2 Final assignment folder.
Note: You can find the approximate equilibrium point (intersection point) through the supp Table 1 Future Supply and Demand for Standard boxes Price per box $17.00 2 0.1 $17.20 1.8 0.2 $17.40 1.6 0.3 $17.60 1.4 0.4 $17.80 1.2 0.5 $18.00 1 0.6 $18.20 0.8 0.7 $18.40 0.6 0.8 $18.60 0.4 0.9 $18.80 0.2 1 $19.00 0.1 1.1 Create a Supply and Demand Chart for the Standard box below Daily US demand of Standard boxes (in billions of boxes per day) Daily US supply of Standard boxes (in billions of boxes per day) Question 1 : 1. Based on th for the number produce. After . 0.5 1 1.5 2 2.5 Supply
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Equilibrium: $18.25 Note: rounding errors are acceptable. Table 2 Future Supply and Demand for Deluxe boxes Price per box $25.00 2 0.3 $25.50 1.8 0.4 $26.00 1.6 0.5 $26.50 1.4 0.6 $27.00 1.2 0.7 $27.50 1 0.8 $28.00 0.8 0.9 $28.50 0.6 1 $29.00 0.4 1.1 $29.50 0.2 1.2 $30.00 0.1 1.3 Daily US demand of Deluxe boxes (in billions of boxes per day) Daily US supply of Deluxe boxes (in billions of boxes per day) Question 2 : 2. Bas for the produ 16.5 17 17.5 18 18.5 19 0 0.5 Prices
Create a Supply and Demand Chart for the deluxe box below Equilibrium: Equilibrium: $22.75 Note: rounding error is acceptable. 24 25 26 27 28 29 30 0 0.5 1 1.5 2 2.5 Prices Supply
ply and demand curves or find the exact equilibrium point by solving the supply and demand equatio he information provided in Table 1, create a chart in the space below showing the supply and d r of Standard boxes in the United States per day. This information is helpful in knowing how man r you have examined the graph below, identify the price and quantity at which market equil Daily US demand of Standard boxes (in billions of boxes per day) Linear (Daily US demand of Standard boxes (in billions of boxes per day)) Daily US supply of Standard boxes (in billions of boxes per day)
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sed on the information provided in Table 2, create a chart in the space below showing the supply and e number of Deluxe boxes in the United States per day. This information is helpful in knowing how m uce. After you have examined the graph below, identify the price and quantity at which market equil 19.5 Linear (Daily US supply of Standard boxes (in billions of boxes per day))
31 Daily US demand of Deluxe boxes (in billions of boxes per day) Linear (Daily US demand of Deluxe boxes (in bil- lions of boxes per day)) Daily US supply of Deluxe boxes (in billions of boxes per day) Linear (Daily US supply of Deluxe boxes (in billions of boxes per day))
ons. Rounding errors are acceptable. demand curves ny boxes to librium exists.
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d demand curves many boxes to librium exists.
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1. Last month the company sold 10 million of their Standard boxes at an average price of $18.00 pe This week the company raised the average price to $18.40 per box. The company sold 9.5 million bo the month. The variable cost per unit is $10 and the fixed costs are $10 million per month. Assume costs don't change in the short term. What is the price elasticity of demand? Can the demand be characterized as price elastic, price inelastic, or neither? By how much did revenues increase or decrease as a result of the change in price? By how much did profits increase or decline? 2. After reviewing last month's results, the company decided to lower the price of a Standard box to After this change, the volume sold increased to 10.5 million boxes for the month. What is the price elasticity of demand? Can the demand be characterized as price elastic, price inelastic, or neither? By how much did revenues increase or decrease as a result of the change in price? By how much did profits increase or decline? 3. Last month the company sold 1.55 million Deluxe boxes at an average price of $28 per box. This the company raised the price to $29 and sold 1.35 million boxes. The variable cost per unit is $20 a fixed costs are $3 million per month. Assume these costs don't change in the short term. What is the price elasticity of demand? Can the demand be characterized as price elastic, price inelastic, or neither? By how much did revenues increase or decrease as a result of the change in price? By how much did profits increase or decline?
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4. After reviewing the last results, the company decided to lower the price to $27 and sold 1.65 mil boxes for the month. What is the price elasticity of demand? Can the demand be characterized as price elastic, price inelastic, or neither? By how much did revenues increase or decrease as a result of the change in price? By how much did profits increase or decline?
Select One Price Elastic Price Inelastic Unit Price Elastic
Price Elasticity Quantity Price 10 18.00 Original 9.5 18.40 New % change % change Elasticity of Demand -5.13% 2.20% -2.33 Elasticity: Price Elastic By how much did revenues increase or decrease as a result of the change in price? By how much did profits increase or decline? $ (0.2) Price 10 $ 18.00 $ 180 $ 10.00 $ 100 9.5 $ 18.40 $ 175 $ 10.00 $ 95 Quantity Price 10 18.00 Original 10.5 17.60 New % change % change Elasticity of Demand 4.88% -2.25% -2.17 Elasticity: Price Elastic By how much did revenues increase or decrease as a result of the change in price? By how much did profits increase or decline? $ 4.8 Price 10 $ 18.00 $ 180 $ 10.00 $ 100 10.5 $ 17.60 $ 184.8 $ 10.00 $ 105 Quantity Price 1.55 $28.00 Original 1.35 $29.00 New % change % change Elasticity of Demand -13.79% 3.51% -3.93 Standard Boxes sold per monthly (millions) Revenue (millions) Variable Cost per Standard box Variable Cost ( millions) Standard Boxes sold per month (millions) Revenue (millions) Variable Cost per Standard box Variable Cost (millions) er box. oxes for e these o $17.60. month and the
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Elasticity: Price Elastic By how much did revenues increase or decrease as a result of the change in price? By how much did profits increase or decline? $ (0.25) Price 1.55 $28.00 $ 43.40 $ 20.00 $ 31 1.35 $29.00 $ 39.15 $ 20.00 $ 27.00 Quantity Price 1.55 $28.00 Original 1.65 $27.00 New % change % change Elasticity of Demand 6.25% -3.64% -1.72 Elasticity: Price Inelastic By how much did revenues increase or decrease as a result of the change in price? By how much did profits increase or decline? $ (0.85) Price 1.55 $28.00 $ 43.40 $ 20 $ 31.00 1.65 $27.00 $ 44.55 $ 20 $ 33.00 Deluxe boxes sold per month (millions) Revenue (millions) Variable Cost per Deluxe box Variable Cost (millions) Deluxe boxes sold per month (millions) Revenue (millions) Variable Cost per Deluxe box Variable Cost (millions) llion
$ (5.2) $ 10 $ 110 $ 70 $ 10 $ 105 $ 69.80 $ 4.8 $ 10 $ 110 $ 70.00 $ 10 $ 115 $ 74.80 Fixed cost per month (millions) Total Cost (millions) Monthly Profit (millions) Fixed cost per month Total Cost (Millions) Monthly Profit (millions)
$ (4.25) $ 3 $ 34 $ 9.40 $ 3 $ 30 $ 9.15 $ 1.15 $ 3 $ 34 $ 9.40 $ 3 $ 36 $ 8.55 Fixed cost per month Total Cost (Millions) Monthly Profit (millions) Fixed cost per month Total Cost (Millions) Monthly Profit (millions)
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1. The company views its goal as profit maximization. Complete the table to the right to approximate the profit-maximizing price for the Standard boxes. What is the closest price that will help the company maximize the profit on Standard boxes? 2. The company views its goal as profit maximization. Complete the table to the right to approximate the profit-maximizing price for the Deluxe boxes.
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What is the closest price that will help the company maximize the profit on Deluxe boxes?
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Profit Maximization Price 5 $ 22.00 $ 110.00 $ 10.00 $ 50.00 5.5 $ 21.60 $ 118.80 $ 10.00 $ 55.00 6 $ 21.20 $ 127.20 $ 10.00 $ 60.00 6.5 $ 20.80 $ 135.20 $ 10.00 $ 65.00 7 $ 20.40 $ 142.80 $ 10.00 $ 70.00 7.5 $ 20.00 $ 150.00 $ 10.00 $ 75.00 8 $ 19.60 $ 156.80 $ 10.00 $ 80.00 8.5 $ 19.20 $ 163.20 $ 10.00 $ 85.00 9 $ 18.80 $ 169.20 $ 10.00 $ 90.00 9.5 $ 18.40 $ 174.80 $ 10.00 $ 95.00 10 $ 18.00 $ 180.00 $ 10.00 $ 100.00 10.5 $ 17.60 $ 184.80 $ 10.00 $ 105.00 11 $ 17.20 $ 189.20 $ 10.00 $ 110.00 11.5 $ 16.80 $ 193.20 $ 10.00 $ 115.00 12 $ 16.40 $ 196.80 $ 10.00 $ 120.00 12.5 $ 16.00 $ 200.00 $ 10.00 $ 125.00 13 $ 15.60 $ 202.80 $ 10.00 $ 130.00 13.5 $ 15.20 $ 205.20 $ 10.00 $ 135.00 14 $ 14.80 $ 207.20 $ 10.00 $ 140.00 $18.00 Profit Maximization Price 1 $ 30.00 $ 30.00 $ 20.00 $ 20.00 1.2 $ 29.50 $ 35.40 $ 20.00 $ 24.00 1.35 $ 29.00 $ 39.15 $ 20.00 $ 27.00 1.5 $ 28.50 $ 42.75 $ 20.00 $ 30.00 1.55 $ 28.00 $ 43.40 $ 20.00 $ 31.00 1.6 $ 27.50 $ 44.00 $ 20.00 $ 32.00 1.65 $ 27.00 $ 44.55 $ 20.00 $ 33.00 1.7 $ 26.50 $ 45.05 $ 20.00 $ 34.00 1.75 $ 26.00 $ 45.50 $ 20.00 $ 35.00 Standard boxes sold per month (millions) Revenue (price x volume) Variable Cost per Standard box Variable Cost (cost per unit x volume) Deluxe boxes sold per month (millions) Revenue (price x volume) Variable Cost per Deluxe box Variable Cost (cost per unit x volume)
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1.8 $ 25.50 $ 45.90 $ 20.00 $ 36.00 1.85 $ 25.00 $ 46.25 $ 20.00 $ 37.00 1.9 $ 24.50 $ 46.55 $ 20.00 $ 38.00 1.95 $ 24.00 $ 46.80 $ 20.00 $ 39.00 2 $ 23.50 $ 47.00 $ 20.00 $ 40.00 2.05 $ 23.00 $ 47.15 $ 20.00 $ 41.00 2.1 $ 22.50 $ 47.25 $ 20.00 $ 42.00 2.15 $ 22.00 $ 47.30 $ 20.00 $ 43.00 2.2 $ 21.50 $ 47.30 $ 20.00 $ 44.00 2.25 $ 21.00 $ 47.25 $ 20.00 $ 45.00 $28.50
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MR MC $ 10.00000 $ 60.0000 $ 50.00 $ 10.00000 $ 65.0000 $ 53.80 $ 17.60 $ 10.00 $ 10.00000 $ 70.0000 $ 57.20 $ 16.80 $ 10.00 $ 10.00000 $ 75.0000 $ 60.20 $ 16.00 $ 10.00 $ 10.00000 $ 80.0000 $ 62.80 $ 15.20 $ 10.00 $ 10.00000 $ 85.0000 $ 65.00 $ 14.40 $ 10.00 $ 10.00000 $ 90.0000 $ 66.80 $ 13.60 $ 10.00 $ 10.00000 $ 95.0000 $ 68.20 $ 12.80 $ 10.00 $ 10.00000 $ 100.0000 $ 69.20 $ 12.00 $ 10.00 $ 10.00000 $ 105.0000 $ 69.80 $ 11.20 $ 10.00 $ 10.00000 $ 110.0000 $ 70.00 $ 10.40 $ 10.00 $ 10.00000 $ 115.0000 $ 69.80 $ 9.60 $ 10.00 $ 10.00000 $ 120.0000 $ 69.20 $ 8.80 $ 10.00 $ 10.00000 $ 125.0000 $ 68.20 $ 8.00 $ 10.00 $ 10.00000 $ 130.0000 $ 66.80 $ 7.20 $ 10.00 $ 10.00000 $ 135.0000 $ 65.00 $ 6.40 $ 10.00 $ 10.00000 $ 140.0000 $ 62.80 $ 5.60 $ 10.00 $ 10.00000 $ 145.0000 $ 60.20 $ 4.80 $ 10.00 $ 10.00000 $ 150.0000 $ 57.20 $ 4.00 $ 10.00 MR MC $ 3.00000 $ 23.0000 $ 7.00 $ 3.00000 $ 27.0000 $ 8.40 $ (0.75) $ 20.00 $ 3.00000 $ 30.0000 $ 9.15 $ (0.48) $ 20.00 $ 3.00000 $ 33.0000 $ 9.75 $ (0.44) $ 20.00 $ 3.00000 $ 34.0000 $ 9.40 $ (0.08) $ 20.00 $ 3.00000 $ 35.0000 $ 9.00 $ (0.08) $ 20.00 $ 3.00000 $ 36.0000 $ 8.55 $ (0.08) $ 20.00 $ 3.00000 $ 37.0000 $ 8.05 $ (0.08) $ 20.00 $ 3.00000 $ 38.0000 $ 7.50 $ (0.08) $ 20.00 Fixed cost per month (millions) Total Cost (Fixed + Variable) Monthly Profit (revenue - all costs) Fixed cost per month (millions) Total Cost (Fixed + Variable) Monthly Profit (revenue - all costs)
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$ 3.00000 $ 39.0000 $ 6.90 $ (0.08) $ 20.00 $ 3.00000 $ 40.0000 $ 6.25 $ (0.08) $ 20.00 $ 3.00000 $ 41.0000 $ 5.55 $ (0.08) $ 20.00 $ 3.00000 $ 42.0000 $ 4.80 $ (0.09) $ 20.00 $ 3.00000 $ 43.0000 $ 4.00 $ (0.10) $ 20.00 $ 3.00000 $ 44.0000 $ 3.15 $ (0.14) $ 20.00 $ 3.00000 $ 45.0000 $ 2.25 $ (0.67) $ 20.00 $ 3.00000 $ 46.0000 $ 1.30 $ 0.06 $ 20.00 $ 3.00000 $ 47.0000 $ 0.30 $ - $ 20.00 $ 3.00000 $ 48.0000 $ (0.75) $ (0.02) $ 20.00
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