2019 Atlantic Taffy Pricing Case Understanding the effects of pricing on revenues, costs and profits (6% of course grade)Introduction: It is April and you have recently been hired as the manager of Atlantic Taffy Company in Bay Head, New Jersey. You have been asked to improve profitability. The company got its name from a propriety taffy first sold in a Jersey Shore concession also owned by the Talbot family. Note: Please use Excel for all calculations and turn in your Excel worksheet. Then use Word for a final 5-8 page written report to the owners detailing your findings, analyses and recommendations, making sure that your written report answers all the specific questions in this assignment. Analysis of Pricing: You manage The Atlantic Taffy Company which makes a saltwater taffy bar for sale to gift shops from Atlantic City, New Jersey, to Mount Desert Island near Bar Harbor Maine. The company sells individually wrapped bars in boxes of 50 for $81.00 each. The candies retail for $3.99 for an individual bar and sales have been strong. The owners of the Atlantic would like to increase its sales and profits. They know that, if price is lowered, they will generate more sales. Sales are typically steady at 35,000 boxes per month from May through October. Last year they sold 35,000 boxes in May. So they run an experiment. Price is lowered to $73.00 per box in May of this year and the number of deliveries increases to 37,000.What is the Price Elasticity of Demand?Is elasticity elastic, inelastic or neither?What does this mean and why does it matter?Will Revenues increase or decrease as a result of the price cut? By How much?You calculate that the fixed costs for the Atlantic Taffy are $25,000 per month (independent of number of boxes created), and each box costs $48 for the labor, candy, packaging and shipping (variable costs=per units produced). Will profits go up or down as a result of the price cut? By How much?Income statement profits are revenue minus all costs (fixed plus variable).David Talbot, the 19 year old son of the owner, says that there wasn’t enough time in the experiment. He estimates that in the second month, June, Atlantic Taffy will sell 40,000 boxes at $73.00 per box. Please answer the following assuming that David is correct. You want to get an idea of what will happen to profits before you commit to an action and make a projection. If profits are projected to go up assuming that David is correct, then you will keep the current price of $73.00 during June. If the profits are projected to go down, you plan to return to $81 per box.What would be the Price Elasticity of Demand if David is correct?Is elasticity elastic, inelastic or neither?What does this mean and why does it matter?Will Revenues increase or decrease as a result of the price cut to $73.00 at 40,000 boxes? By How much?You calculate that the fixed costs for the Atlantic Taffy are still $25,000 per month and each box costs $48.00. Make a projection of revenues, costs and profits for June. Will profits go up or down as a result of the price cut if Atlantic Taffy sells 40,000 boxes? By How much?The Atlantic Taffy owners see the change in profits from the price decrease in May and the projection for June. They decide to go back to a price of $81.00 and have sales of 35,000 boxes in June. The May production required staff to work 2 weekends and there were many complaints. No one wanted to work weekends during vacation season on the East Coast and there was no room to expand production. The owners were willing to add a second location that would permit greater production if profits justified. They decide that they are only willing to manage enough production to support 35,000 deliveries at a price of $81.00. However, if they raised price to $90.00 per box for July, they would be willing to hire additional staff, lease more space across town and produce 58,000 boxes. Calculate the Elasticity of Supply. Is it elastic or inelastic?How many deliveries will Atlantic have at a price of $90.00? Hint: you can only sell what customers will buy. Use the original elasticity of demand calculated in #1 above.What will be the Revenue?What will be the Profit?Should Atlantic Taffy raise the price to $90.00? Why or why not?As Manager of the company, compile your report and recommendations to the owners.Format of the report should include:A meaningful report titleA short executive summary with all key results and recommendationsA short introduction with report purpose and contentsSection headings helpful to the owner readersConclusions with key points repeated from the report bodyReferences list in APA formatPage numbers on all pagesBelow is the rubric to be used for evaluating this project part of the assignment.

Unit Six:DQ#1 Putting it TogetherENG102Unit6Lecture.pdf (Attached)How trimmed are your sources? Are they embedded in your research conversation?  Discuss specific elements of the research process that seem frustrating (or exciting) as you work through putting it all together.Unit Six:DQ#2ENG102Unit6SamplePaper (Attached)Read the student sample paper, p. 634 and discuss its presentation:Review the introduction—how effective is the story/scenario the writer uses?Discuss the effect of anecdotes in arguments? Did you include any in your research? For what purpose?Unit Six: Research Draft #1 with Works CitedENG102UnitSixReference.pdf (Attached)You will create a research draft. The research draft format should contain structural essays and not scattered thoughts. The draft should contain the following:• Explicit claim, clear purpose• Proper citation—in-text and Works Cited• Varied evidence with blended writing styles, revised writingReview the Drafting Research Reference document attached prior to starting the assignment.

Please submit a PDF or docx file of your saved Multisim laboratory in this section.Please use this to download your Multisim laboratory assignment for the Series Circuit.You will design the circuit using 3 resistors, and they should be in this order:R1 = The day of your birth. Example born on the 2nd day of the month, add a zero making the resistance 20 ohm. If you were born on the 20th day add a zero, making the value 200 ohms.R2 = The month of your birth plus one zero. Example born in March 03, the resistor value will be 30 ohmsR3 - The year you were born, only the last two digits. Example born in 1992, the resistor value will be 92 ohms. If you were born in 2000 it will be 20 ohms. And if you were born in 2003 the value will be 30 ohms.The power will be 40V- DCThe Fuse will be 2AInclude a SPST switch.