Being in the military does not allow me to utilize what I have learned in this simulation into my daily work but I can use it when it comes to fundraising for morale and welfare events. We typically have bake sales and burrito sales and try to at least double what we spend. We can use cheaper ingredients and increase the price which may give us a surplus of goods even though that is not our goals. Another scenario would be for my squadron to just make a set amount at a price we agree on and increase the demand so that people would be looking forward for our next event and may increase their purchase order in fear of us running out of goods again.…
This report provides quantative information on the lemonade stand, sourced from financial statements, the business journal, and financial data collected during all three seasons. The following economic summary report will tell how well the lemonade stand’s business is performing by deducting the stand’s capital costs from its profits. Through analysis of the previously stated quantative information, the company will be able to measure how well the stand is using capital to build economic value. The economic summary report’s fundamental objective is to maximize the stand’s return for its owners, as well as to focus on very precise value-related targets, be they cost reductions, new investments, or other resource allocation.…
Lemonade Stand Economic Summary Report John Orr Ashford University Intro to Quantitative Principles BUS599 Dr. Harrison Green October 27, 2010 Lemonade Stand Economic Summary Report Balance Sheet |BALANCE SHEET | | |Season 1 |Season 2 |Season 3 | |Profitability Measures | | | | | ROA |69.7% |47.9% |31.6% | | ROE |77.2% |53.6% |33.0% | | Profit Margin |61.4% |68.0% |68.0% | | | | | | |Asset Management | | | | | Inventory Turnover |16.41 |10.61 |10.67 | | Asset Turnover |1.134 |0.703 |0.464 | | | | | | |Liquidity Measures | | | | | Current Ratio |9.12 |8.16 |21.97 | | Cash Ratio |8.84 |8.67 |21.65 | | | | | | |Financial Leverage | | | | | Debt-Equity Ratio |0.107 |0.119 |0.046 | | | | |…
Because consumers are generally more sensitive to price increases than to price decreases, it is easier to lose current customers with a price increase than it is to gain new customers with a price decrease.…
In the simulation of the city of Atlantis, it demonstrated how supply and demand can shift due to adjustments with prices. The simulation focused on two-bedroom rental properties. We received the expertise of Hal Morgan and Susan Hearst from Good Life Property Management to determine rental prices and how to balance out the supply and demand. Through the simulation, I was able to see that when the rental price of the apartments decreased, there would be an increase in the demand for the apartments. Furthermore, if the price of the apartments increased, then there would be a decrease in the demand. However, to balance out the supply and demand, there needed to be a shift in either the supply or demand.…
A simulation was conducted to understand supply and demand when renting out apartment homes. This paper will briefly explain two microeconomics and two macroeconomics principles, it will include one shift of the supply curve and demand curve in the simulation. For each of the shifts the affect of the equilibrium price, quantity, and decision making will be analyzed. A description of supply and demand from the simulation and how to apply it in the workplace is included. Concepts of macroeconomics will be explained, and how understanding the factors that affect shifts in supply, and demand on the equilibrium price. In addition an explanation of how price elasticity of demand affects a consumer’s purchasing and firms pricing strategy will be included.…
The Root-Beer Distribution Game, as played by the author and used as the basis for this report, is an on-line adaptation of the Beer Distribution Game originally created in the 1960’s by Jay Forrester, et al, of the MIT Sloan School of Management.…
According to Colander (2010), states that Demand can be defined as “Quantity demanded rises as price falls, other things constant. Or alternatively: Quantity demanded falls as price rises, other things constant.” And on the other hand Supply…
3. From November 2007 to March 2008, the price of gold increased from $865 an ounce to over $1,000 per ounce. The increase in price had little to do with the increase in demand from the jewelry industry but…
To reverse this implication where price wars happen during low-demands, we can explore the fact that in high demand there is a better opportunity to bring new customers to the firm, since in economic booms there will usually enter more new first time customers in the market. So, and as the price is a very attractive characteristic to bring more new customers, firms should play with this and take advantage to increase their long term market share and long term profitability. Since in high demand period is more economic favorable charging a lower price to attract this new costumers that certainly will became a loyal…
There are many uncertainties that can affect Julia’s profit. The case states that Julia anticipates selling all of her food; but not selling out will adversely affect her already strained profit margin. Fluctuations in the cost of the food could also change the profit. A game that doesn’t sell out could also reduce the number of customers Julia has on any given…
When demand is low or quantity is high the seller will usually drop the price to sell the product, but when the demand is high or quantities are short the price will rise. When a…
During this art project, Blossoms 2 learned that lemonade is a very popular drink in the summer time. Ms. Jessica asked the children do they drink lemonade with mommy and daddy and Elle said, “I drink lemonade with mommy and daddy.” Ms. Jessica told the class they were going to make Lemonade out of felt ice material (add what was the class reactions). For this project Blossoms 2 used paint, paper, felt ice cubes, and plastic straws.…
My business has been extremely successful at the Park Meadows mall. I plan on expanding to the Aurora mall now. It will reach a different “type” of people but with the lower costs it will be beneficial to the consumers that I am trying to reach there. The economy in Aurora is extremely lower than the economy in Lone Tree where the Park Meadows mall is located. I will be able to reach a different variety of people and make my business be well known for an opportunity to expand even more than just the Aurora mall.…
A business with weather exposure may choose to buy or sell a futures contract, Which is equivalently to a swap such that one counterparty gets paid if the degree Day over a specific period are greater than the strike level, and the other party gets paid if the degree day over that period are less than the strike. A business may also choose to write an option. A heating oil retailer may feel that if the winter is very cold they will have high revenues - so they might sell an HDD call. If the winter is very cold, the retailer can afford to write the option and pay out with higher than normal revenues.…