I$\text{'}$m thinking about starting a specialty store in a local retail shopping center to sell gourmet lemonade.

But, before opening the store, I$\text{'}$m curious how my profit will be impacted by the price I charge and my

unit cost.

For initial planning purposes, I am thinking:

$$ I will charge my customers $$4\mathrm{.}00$ per glass.

$$ My production cost per glass will be $45.$

$$ My annual lease and overhead costs will be $$45,000.$

$$ I estimate demand will be similar to demand in cities in the Southeast. The Lemonade industry's

estimated demand curve is $65000-9000*$price$.$

I want to know my annual profit, and I want to be able to adjust my price and production cost per glass.

Draw an influence diagram showing how profit and my decision variables are related.

Use PowerPoint to create your influence diagram. The shapes can be found on the Insert tab of the

Ribbon in the Illustrations group. The basic four shapes are highlighted below.

Submit a single PPT slide containing your Gourmet Lemonade Shop influence diagram.

BUAD $503|$ Influence Diagram Assignment Page $|1$