Question

As you know we are the only gourmet nut producer in town. Right now we are...

As you know we are the only gourmet nut producer in town. Right now we are charging a price of $5 per bag for both our cinnamon roasted almonds and our cinnamon roasted pecans, no matter which brand is more popular. However, we have noticed that demand for the pecans is five times as high as demand for almonds.

In an effort to increase our profits we are thinking about raising prices by 30% for our cinnamon roasted pecans. Since demand for these nuts is five times as high as for the almonds, we think the market can absorb the price increase.

Our sales department has supplied us with the following two estimates of total yearly demand for pecans:


QPecans= 3000-150 PPecans

QAlmonds= 1200-150 PAlmonds

The sales department has also informed us that our costs are $2 per bag, independent of type of nut. Please review our current pricing strategy and let us know if a price hike for pecans is feasible.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1


Kindly upvote:)

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
As you know we are the only gourmet nut producer in the south. We are known...
As you know we are the only gourmet nut producer in the south. We are known not only for the quality of our nuts, but also for our unique seasonings. Right now we are charging a price of $5 per bag for all of our nuts, no matter which brand is more popular. This includes our cinnamon-cayenne roasted almonds, maple-chipotle roasted pecans, and honey-mesquite roasted cashews. However, we feel that our generic approach to pricing is un-optimal and outdated given...
Amazon CEO Jeff Bezos’ 2020 letter to shareholders details the company’s plans to combat the coronavirus...
Amazon CEO Jeff Bezos’ 2020 letter to shareholders details the company’s plans to combat the coronavirus Amazon CEO Jeff Bezos just published his annual letter to shareholders, and the efforts his company is taking to address the COVID-19 crisis were front and center. He outlined the company’s plans to build a lab to test employees and the social distancing measures its implemented in its facilities among other initiatives. Other than the coronavirus pandemic, Bezos also discussed the retail giant’s efforts...
Answer the following questions from the information below a. What are the organization's marketing goals? b....
Answer the following questions from the information below a. What are the organization's marketing goals? b. What are the symptoms of the problem? In other words, which of the organization's marketing goals mentioned in section a., above are not being met? c. What is the organization's problem? Look at the symptoms and make a judgement about what their cause may be. Do not confuse symptoms with problems. Problems cause symptoms. d. Perform a SW/OT analysis: -What are the organization's internal...
DONLEY BROTHERS The Donley Brothers Company had encountered the problem of latent defects in some of...
DONLEY BROTHERS The Donley Brothers Company had encountered the problem of latent defects in some of its purchased castings. Being latent, the defects did not show up until after machining had taken place at Donley Brothers. This group of failures greatly irritated the manufacturing boss, who declared that “repairing those darn castings is eating up all our profits.” When the defects were discovered, the rough casting had to be taken off the machine, the defect chipped out and repair-welded, and...
Founded in 1962 by Bernard Sliwin, Athletic Knit (AK), a manufacturer of sports team uniforms, specialized...
Founded in 1962 by Bernard Sliwin, Athletic Knit (AK), a manufacturer of sports team uniforms, specialized in hockey jerseys, with 80 per cent of its revenue coming from the sales of hockey-related products. AK sold both stock and customized products in Canada and the United States. The company’s mission was to provide high quality sportswear and high quality service to its customers. Daniel Sliwin, the founder’s grandson, became AK’s vice president in 2009. He and his brother David improved the...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary rivals? How will the acquisition of Reebok by Adidas impact the structure of the athletic shoe industry? Is this likely to be favorable or unfavorable for New Balance? 2- What issues does New Balance management need to address? 3-What recommendations would you make to New Balance Management? What does New Balance need to do to continue to be successful? Should management continue to invest...
Asia’s e-commerce landscape has been booming in recent years. The swift adoption of smartphones and greater...
Asia’s e-commerce landscape has been booming in recent years. The swift adoption of smartphones and greater access to the internet has allowed consumers in the region to be a major force in the global digital economy. The expansion looks set to continue at a rapid pace. According to a November 2018 report by Fitch Solutions, e-commerce sales in the region are forecast to increase by 14.2% this year, with an estimated average annual increase of 14% over the medium term...
Wal-Mart Online Wal-Mart is one of the largest companies in America. It is definitely the largest...
Wal-Mart Online Wal-Mart is one of the largest companies in America. It is definitely the largest retailer, both in terms of the number of stores (8,970 worldwide in 2011) and the level of sales ($419 billion from the 2011 Annual Report). By pushing suppliers to continually reduce costs, Wal-Mart is known for pursuing low prices and the stores often attract customers solely in-terested in lower prices. With Wal-Mart’s expansion into groceries, the company has be-come the largest retail grocer in...
What are 4 key things you learned about the topic from reading their paper? How does...
What are 4 key things you learned about the topic from reading their paper? How does the topic relate to you and your current or past job? Critique the paper in terms of the organization and quality. Team 3 answer questions above. Part I In today’s world we see fear among people when dealing with sexual harassment. This leads to people not reporting sexual harassment. A misconception about sexual harassment is that it’s only about touching and forcing other people...
Read the following case carefully and then answer the questions. In the movie Face/Off, John Travolta...
Read the following case carefully and then answer the questions. In the movie Face/Off, John Travolta got a new look by exchanging faces with Nicolas Cage. Unfortunately, he got a lot of trouble along with it. John could receive a much less troublesome new look by using Botox, a treatment discovered by Vancouver’s Dr. Jean Carruthers, who came upon the cosmetic potential of Botox in 1982 while treating a woman with eye spasms. Botox is marketed by Allergan, a specialty...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT