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.

A portfolio is used as a measurement outcome and allows students to reflect on their academic experience, synthesize their accomplishments, and develop a plan for future professional growth. The portfolio will be divided into three parts.Part 1 – Goals for Transition to Professional Nursing Practice.In this section, you will write a 2-3 page paper in which you will identify your professional strengths, weaknesses, opportunities, and threats. You will also develop professional goals. Developing a plan for your future career goals will layout the clinical and educational resources you need to be prepared for opportunities when they arise. In order to focus your goals, you will be utilizing two of the eight areas of Miller’s Wheel of Professionalism. Write an outline of your goals, they can be clinical, educational, or both. What are your strengths, weaknesses, and current assets? Where you now and what opportunities or threats will aid or impede your progress towards your goals? How will you utilize your opportunities and deal with threats to succeed in your professional growth. Where you now and what opportunities or threats will aid or impede your progress towards your goals? How will you utilize your opportunities and deal with threats to succeed in your professional growth. What skills or educational requirements are needed to get you where you want to go?State how you will accomplish these goals. What resources do you need to attain each step and how will those resources be attained. Resources may be funding sources, time resources, and/or commitments from your employer or family and friends.Develop a time frame. How will you accomplish your goals in 3 or 5 years? How will you stay on track? You may decide you want deadlines for the completion of a phase of your professional development plan, or deadlines for the beginning of each step. However you set up the timeline, it is one of the most critical parts for keeping on track.Outline for writing the first part of your portfolio is belowPart 1- Transition to Professional Nursing PracticeProfessional DevelopmentPersonal History and career plansOutline your goals:Focus: Clinical, educational, or bothTime frame: 3 years & 5 yearsSelect two of the eight areas of Miller’s Wheel of Professionalism and relate them to your professional goals.Indicate how you will accomplish your 3 year goal? 5 year goal? Include dates.60%Professional strengths, weaknesses, opportunities and threats.Identify your professional strengths, weaknesses, opportunities, and threats. Discuss how these may impede or help you progress towards obtaining your goal30%Spelling, Sentence Structure, Organization, and Grammar10%This activity aligns with:Course Outcome  1. Integrate nursing leadership concepts and theories into the various roles of the professional registered nurse to promote safe and high-quality nursing care. Course Outcome 2. Promote professional development for self and others, in order to advance the nursing profession. AACN BSN Essential I.9: Value the ideal of lifelong learning to support excellence in nursing practice. AACN BSN Essential VIII.6: Reflect on one’s own beliefs and values as they relate to professional practice. AACN BSN Essential VIII.13: Articulate the value of pursuing practice excellence, lifelong learning, and professional engagement to foster professional growth and development.

CASE 10.1 Power Force Corporation (pp. 401-405) Provide substantial insight and discuss to the following case questions:  Compare and Contrast the three options from the perspective of customer service. Which will provide the best level of service? Why. Compare and contrast the three options from the perspective of cost. Which one will provide the most economical solution for PFC. Why? What types of functional and cost trade-offs will Himmer need to analyze? Which distribution option gives PFC the best opportunity for future success? Why?