Pricing Assignment Fall 2016 M300 NAME print Austin Begle Section No 12776 USERNAME ausbegle For the questions below please clearly highlight your answer and upload this file to Canvas before Thursday midnight November 17th 1 John is a brand manager for Coors Light John decided to drop the price for Coors Light from 12 case in January 2009 to 10 case in February 2009 He examined the data in early March and found February demand 120 000 January demand 100 000 cases The elasticity of demand is a b c d About 1 40 About 36 About 30 About 1 20 2 The response to the price cut was a b Elastic Inelastic 3 If Janis is selling Pizza Hut pizzas and her boss says that she wants a 50 markup on the price and the cost is 4 00 what is the price a b c d 8 12 15 16 4 If the drinks Janis is selling are priced at 2 50 for the consumer and the cost is 1 00 what is the markup as a percentage of the cost a b c d 50 100 150 200 5 AT T offers a cable plan in the northeastern U S for 40 month with the cable plan experiencing an elasticity of 3 AT T is considering offering the same cable plan in the western US The firm knows elasticity of demand 4 in the west What price should be presented to customers in the west a b c d Around 55 Around 51 Around 44 Around 35 6 The elasticity for an 18 ounce tube of Coppertone Company s sun block is 4 in the southern U S and 3 in the northern U S If the price of the Coppertone is 7 30 in the north for this product what should the firm charge for this product in the south a b c d 6 85 9 33 6 50 7 30 7 Wal Mart is selling one roll of Bounty paper towels for 3 00 Wal Mart buys Bounty from Procter and Gamble for 1 00 per roll Wal Mart s markup is how much a b c d 1 00 per roll 2 50 per roll 1 50 per roll 2 00 per roll 8 Stacy evaluates sales data for the I m A Little Cooler mini cooler company She knows that average monthly demand 6 000 coolers when they are priced at 16 cooler Stacy estimated cost of goods sold for the product to be 6 cooler If the price of the product is increased by 50 but the cost remains the same how many fewer coolers can she sell to produce the same level of profit as she does with a 16 price and 6 cost a b c d 3 333 fewer coolers 4 000 fewer coolers 4 307 fewer coolers 2 667 fewer coolers EQUATIONS 1 Price Markup Cost P MU C MU P C C P Markup MU on Price MUP MU P MU on Cost MUC MU C Q2 Q 1 E 2 Q1 P2 P 1 P1 3 P1 E 1 E2 E1 P2 E 1 E2 E2