Aaaec 3301 2021 HW 1[6138] PDF

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AAEC 3301 FFALL ALL 2021 Homework Homework-Assignment -Assignment 1 NAME: Suppose you are a food marketing analyst for Albertsons. You are requested to estimate the effect on weekly revenues of a retail price cut of 25 % in Butterball whole turkeys (homogeneous weight) and 30% in Tropicana orange juice containers. These items have been suggested to be placed on sale next week. Your supervisor will make the final decision based in your analysis. a. Currently 40,000 containers of Tropicana orange juice are sold weekly at a price of $ 4:00 per container. You found out that orange juice has an inelastic demand (own price elasticity of –0.4). What is the current weekly total revenue (before change),and the projected total revenue (after change)? What is the change in expected total revenue? ORANGE JUICE

Unit price (a)

Quantity sold or To sell (Q)

Total Revenue (a x Q)

CURRENT NEW (Proposed) CHANGE

b. Currently 2,000 Butterball turkeys are sold per week at an average price of $24.00 per turkey. You found out that turkey demand has an own price elasticity of –2.0. What is the current weekly total revenue (before change) and the projected total revenue (after change)? What is the change in expected total revenue? TURKEY

Unit price (a)

Quantity sold or To sell (Q)

CURRENT NEW (proposed) CHANGE

C What would you recommend?

Total Revenue (a x Q)...