1. Mr. Alpha: Enough with that elasticity junk. Just tell me this – at what price do we maximize…

1. Mr. Alpha: Enough with that elasticity junk. Just tell me this –at what price do we maximize total revenue?” 2. Ms. Beta: “Yes, and what is our price elasticity at that price?” 3. Mr. Cappa: “You marketing folks always talk about revenue. Forget revenue, profits are what matter. What us finance guys want to know is –at what price do we maximize profits?” 4. Ms. Beta: “I think we will have to tell him the incremental cost of our pies for him to answer?” 5. Mr. Cappa: “Okay, its $2.25 per pie –now, what’s the answer?” 6. Ms. Beta: “Yes, and what is our
1. Mr. Alpha: Enough with that elasticity junk. Just tell me this –at what price do we maximize total revenue?” 2. Ms. Beta: “Yes, and what is our price elasticity at that price?” 3. Mr. Cappa: “You marketing folks always talk about revenue. Forget revenue, profits are what matter. What us finance guys want to know is –at what price do we maximize profits?” 4. Ms. Beta: “I think we will have to tell him the incremental cost of our pies for him to answer?” 5. Mr. Cappa: “Okay, its $2.25 per pie –now, what’s the answer?” 6. Ms. Beta: “Yes, and what is our price elasticity at that price?” 7. Mr. Alpha: “Do you remember last year? We had that other consultant who suggested that there is a seasonal pattern in the data. Specifically, she said that pie sales may be higher during the further quarter because of the holidays. Is that true?” 8. Ms. Beta: “…and how would you test for that? And do we know if that effect is significant?” 9. Mr. Cappa: “Yeah, and while we are at it, the new market that the EVP wants us to enter is located in the southern part of the nation and everyone knows that “Southerners eat lots of snack cakes.” It looks like you have two southern cities in your dataset, Atlanta and Dallas. Can you test to see if what they say about Southerners is true?” 10. Ms. Beta: “…and do we know if that effect is significant?”

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