The memo assignment describes the situation and request a recommendation to the problem at hand through an assignment document.

You need to individually identify the relevant analysis tool, calculate the solution, and provide an explanation of their recommendation to the firm.

The case is the following:

Subject: Lobbying for government intervention

Dear Sara,

We are at a crossroads in the political landscape right now. The United States, and Cincinnati in particular, is headed towards an obesity crisis and we only have resources to pursue one of two options. We can either subsidize healthy eating of fruits and vegetables or tax consumption of high sugar items like soda and candy. Focusing just on those 18 years and younger, they are currently consuming the equivalent of five servings of high sugar products a day, compared to only 2.72 servings of fruits and vegetables per day. Surprisingly, there is a 20% premium on healthy foods compared to sugary foods, so clearly pricing is completely out of line. We suggest subsidizing the consumption of fruits and vegetables since this is way too low right now. This will naturally lead to an improvement of health, and allowing for higher consumption of fruits and vegetables, and hopefully less soda. A study from Consumer Report just came out saying that 73% of consumers would eat healthier if it were cheaper. Separately, the World Health Organization found that a 20% subsidy leads to a 10% increase in fruits and vegetables consumption. They also found that a 10% sin tax on sugar would only lead to a 10% decrease in consumption of sugar products. We are also monitoring the policies across the river in Kentucky, who have indicated they do not plan to do anything to address the obesity crisis. Please provide an analysis of the effect of our policy and anything we might be missing for our recommendation to the Cincinnati City Council????