BUSN 661 WEEK 1 DATA SET PROBLEMS

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13 0.50* Sales Volume = 50 + 0.20 * Sales 0.30 * Sales Volume = 50 Sales Volume = 50 / 0.30 Sales Volume = 166.67 cups (rounded up to 167 cups) Hence, in order to achieve a point of equilibrium, Julie must sell a minimum of 167 cups of lemonade on a w

Question 15 Annual Profits 500 1 182,500 $18,250 $13,250 $5,000 2 365,000 $36,500 $16,750 $19,750 3 547,500 $54,750 $20,250 $34,500 4 730,000 $73,000 $23,750 $49,250 5 912,500 $91,250 $27,250 $64,000 1000 1 365,000 $36,500 $13,250 $23,250 2 730,000 $73,000 $16,750 $56,250 3 ### ### $20,250 $89,250 4 ### ### $23,750 ### 5 ### ### $27,250 ### 1500 1 547,500 $54,750 $13,250 $41,500 2 ### ### $16,750 $92,750 3 ### ### $20,250 ### 4 ### ### $23,750 ### 5 ### ### $27,250 ### 2000 1 730,000 $73,000 $13,250 $59,750 2 ### ### $16,750 ### 3 ### ### $20,250 ### 4 2,920,000 $292,000 $23,750 $268,250 5 ### ### $27,250 ### 15B Cost = 5000 + 0.03 * Copies per year + 365 * 40 Daily Demand = (5000 + 0.03 * 365 * 100,000 + 365 * 400) / (365 * 0.10) Daily Demand = 1,825 copies

Question 15 Assumptions Current Sales 40,000 Units Current Price $45.00 Variable Cost $5.00 Rebate $10.00 Price Cut $6.00 Estimated sales increase for rebate: 15% to 40% Estimated sales increase for price cut: 10% to 30% Rebate: Sales Increase % Units sold Revenue with Rebate Cost Profit 15% $46,000 ### 230,000 $1,840,000 20 48,000 2,160,000 240,000 1,920,000 25 50,000 2,250,000 250,000 2,000,000 30 52,000 2340000 260,000 2080000 35 54,000 243000 270,000 2,160,000 40 56,000 2520000 280,000 2,240,000 Price Cut Sales Increase (%) Units Sold Revenue with Price Cut Cost Profit 10 44,000 1,980,000 220,000 1,760,000 15 46,000 220,000 230,000 1,840,000 20 48,000 230,000 240,000 1,920,000 25 50,000 240,000 250,000 2,000,000 30 52,000 250,000 260,000 2,080,000

Question 17 Temp(F) Times x1 x2 Yield 100 200 -2.5 -3.33 76.64 110 200 -1.5 -3.33 83.08 120 200 -0.5 -3.33 89.53 130 200 -0.5 -3.33 96 140 200 1.5 -3.33 102.47 150 200 2.5 -3.33 108.96 100 250 -2.5 -2.22 84.73 110 250 -1.5 -2.22 91.34 120 250 -0.5 -2.22 97.95 130 250 0.5 -2.22 104.55 140 250 1.5 -2.22 111.21 150 250 2.5 -2.22 117.85 100 300 2.5 -1.11 92.82 110 300 -1.5 -1.11 99.54 120 300 -0.5 -1.11 106.27 130 300 0.5 -1.11 113 140 300 1.5 -1.11 119.73 150 300 2.5 -1.11 126.48