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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.
  1. What is the Price Elasticity of Demand?
  2. Is elasticity elastic, inelastic or neither?
  3. What does this mean and why does it matter?
  4. Will Revenues increase or decrease as a result of the price cut? By How much?
  5. 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?
  6. 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.
  1. What would be the Price Elasticity of Demand if David is correct?
  2. Is elasticity elastic, inelastic or neither?
  3. What does this mean and why does it matter?
  4. Will Revenues increase or decrease as a result of the price cut to $73.00 at 40,000 boxes? By How much?
  5. 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.
  1. Calculate the Elasticity of Supply. Is it elastic or inelastic?
  2. 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.
  3. What will be the Revenue?
  4. What will be the Profit?
  5. 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 title
  • A short executive summary with all key results and recommendations
  • A short introduction with report purpose and contents
  • Section headings helpful to the owner readers
  • Conclusions with key points repeated from the report body
  • References list in APA format
  • Page numbers on all pages

Below is the rubric to be used for evaluating this project part of the assignment.

NEED THIS PAPER BY 9PM TODAY MAY 26 2019

For this assignment, you will write a 4-5 page APA Style formatted paper on incivility within the healthcare metaparadigm.

According to the American Nurses Association (ANA):

Nurses are required to create an ethical environment and culture of civility and kindness, treating colleagues, co-workers, employees, students and others with dignity and respect. Similarly, nurses must be afforded the same level of respect and dignity as others. Thus, the nursing profession will no longer tolerate violence of any kind from any source. (ANA, 2015)

Please make sure your 4-5 page paper includes the following:

• A paragraph or two (2) introducing incivility within the healthcare metaparadigm.
• A few paragraphs identifying how incivility impacts an individual nurses’ ability to use high level clinical judgement. (Think about the emotional factors, stress, and patient care needs, etc.)
• A few paragraphs analyzing and identifying the issues that occur with workplace or clinical site incivility (Think about patient care outcomes, policies and procedures, injuries, etc.)
• A few paragraphs discussing how the workplace or clinical site communication is/was affected due to incivility. (Did patients suffer? Were patient treatments missed?)
• A few paragraphs identifying current initiatives that organizations are implementing to decrease incivility within the workplace or clinical sites (Review relevant information from the ANA, ONA, and/or Joint Commission, your organization’s policies and procedures, etc.)
• Provide a closing or conclusion paragraph that ties the paper together.
• Include two (2) APA Style formatted references and citations.

After reading the Claxton IEP book, write a summary of at least 150 words for each of the sevensections. Each section must be addressed thoroughly with a descriptive and detailed entry. Each of the seven sections must be written in APA format, including one direct quote citation (under 40 words in length) from the Claxton text per section (in each of the 7 sections). Use the headings below to separate your sections so there is a clear distinction between your responses to each section. Your paper must follow current APA format throughout, must be written in the third person narrative, must include a title page and reference page, and proper APA headings. Use the IEP book summary Grading Rubric to ensure your paper meets all standards.

Address the following sections:

Workbook Summary One

• Introduction (This is your own introduction to your paper and should include what your paper will be about.)

• Chapter 1: The Law and Students with Special Needs

• Chapter 2: Parents and the IEP Process

• Chapter 3: Present Levels of Academic Achievement and Functional Performance

• Chapter 4: IEP Goals

• Christian Perspective Gained

• Conclusion (This is your own conclusion to the paper you just wrote and should be a concise summary of what your paper was about.)

In this Discussion, we ask you to to watch the video of Stephen Colbert (in character, explanation from Wikipedia: The Colbert Report was a parody of personality-driven political opinion shows including The O’Reilly Factor (Links to an external site.)Links to an external site., in which he portrayed a caricatured version (Links to an external site.)Links to an external site. of conservative (Links to an external site.)Links to an external site.political pundits (Links to an external site.)Links to an external site.. )

He’s giving a speech during the White House Correspondent’s Dinner in 2006. This is an example of an artistic performance that reflects upon and critiques both the president of the United States AND the White House Correspondents, in whose honor this event is held.

Here’s the written transcript (Links to an external site.)Links to an external site. of the speech (hyperlink), so you can quote from it in your essay.

Task: Write a 400 word essay in which you analyze HOW the comedic performance characterizes the press (not President Bush) and WHY such a characterization or caricature of the press is important.

• Keep in mind that the comments reflect Mr. Colbert’s character’s point of view, rather than those of the comedian himself.
• We don’t want you to say whether this was funny or not. Instead, we want you to analyze how this parody of a conservative political commentator (the character of Colbert) portrays the White House correspondents specifically.
• Your essay must use at least one direct quote from Colbert’s speech; and at least one direct quote from the Civics podcast, “The White House Press Secretary.” The third quote (if you’re aiming for an A, should probably come from Colbert’s speech.

Assigned Podcast

1. Liasson, Mara. “The White House Press Secretary (Links to an external site.)Links to an external site..” Civics 101: A Podcast, NPR. (17 min 08 sec). hyperlinked. The transcript is available if you scroll down in the podcast page.

• ***390-410 words. Strict about word limits
• ***Look at rubric please***

For Reference:

List of Press Secretaries for Presidents George W. Bush – Barack Obama