Background

It is often said that it's easier to drop the price than to raise the price. H&H, LLC has seen that firsthand. Their company sells widgets in a retail space. They initially priced their widgets at $7, but they generated no sales. Once they began lowering the price, they found revenue results.

Given seasonality and various holidays, they experimented with the price across the spectrum. They calculated the average quantity purchased per day at each price. Said averages produced the following results:

Sales Price	Quantity Purchased
$6.00	2
$5.00	4
$4.00	6
$3.00	8
$2.00	10
$1.00	12

Assignment

1. In Excel, assemble a table that calculates the following:

• % Change in Price
• % Change in Quantity
• Elasticity
• Create a chart for each price point with its associated quantity.

1. Next, identify the point of unit elasticity on this scale.
2. Also, take a minimum, maximum, and average price on the data. Since they resell these widgets, they have no COGS.
3. Using the three points listed above (min, max, mean), identify the polynomial trend equation for this company. This equation will serve as the Purchased formula.
4. If Profit is simply Price * Purchased, use Solver to maximize the optimal sales price for these widgets.

Deliverables

1. Excel Spreadsheet containing your calculations
2. Word Document Report containing the answers to the questions along with the interpretation of the results.