Help on question 3 and 4 please. step by step.

I Pricing Worksheet with Examples Services Marketing ESTIMATING DEMAND You own a flower shop and you need to estimate demand for your services. Assume the following: Number of households in the market: 850,000 Average number of arrangements purchased per household per year 7 3% Company's estimate share of the total market SOLVE FOR THE FOLLOWING: A. Total annual market demand B. Estimated annual company demand C. Estimated monthly company demand D. Estimated weekly demand (divide monthly by 4) (divide annual by 52) DEMAND ELASTICITY Using the information from ques. #1, assume you will charge on average $45.00 per arrangement. a) Calculate monthly revenue. $45.00 X 14,875 = b) Assume you lower the average selling price to $42.00 per arrangement and your monthly demand increases to 15,600 orders. Determine the elasticity of your demand. What can you infer about your market? E-(02-01) +01 (15,600 - 14.875) + 14.875 = .048 = (P2 - P1) + P1 (42-45) +45 .066 What it infers about your market Reasons include: differentiation includes Would you lower the selling price by $3? positively by increasing demand , because the consumer base responded ESTIMATING DEMAND 3. You own a flower shop and you need to estimate demand for your services. Assume the following: 600,000 Number of households in the market: Average number of arrangements purchased per household per year Company's estimate share of the total market 4 5% SOLVE FOR THE FOLLOWING: A. Total annual market demand B. Estimated annual company demand Estimated weekly demand DEMAND ELASTICITY Using the information from ques. #1, assume you will charge on average $45.00 per arrangement. Calculate monthly revenue. Assume you lower the average selling price to $40.00 per arrangement and your monthly demand increases to 10,850 orders. Determine the elasticity of your demand. What can you infer about your market? Assume you lower the average selling price to $40.00 per arrangement and your monthly demand increases 11, 300 orders. Determine the elasticity of your demand. What can you infer about your market? BREAKEVEN ANALYSIS 5. You own a 10 bedroom Bed and Breakfast With the following, $ 10,000 per month mortgage payment $ 3.000 per month for the gardener and housekeeper $ 7.00 per room for soap, towels etc. $10.00 per room desired Net Profit Assume a 30 day month SOLVE FOR THE FOLLOWING: The selling price per room per night AND the monthly breakeven point. FC + SC = $13,000 (10,000+ 3,000) 13,000 +30+10 = $43.33/room per day VC = $7 NP=$10 TFC + VC + NP $43.33 + $7+ $10 =