In 1996, Mr. Leonardo De Pacrio created TITANS Co. a retailer computer company. Located in downtown Miami, in Florida, TITANS Co. sold basically three brands: Dell, Toshiba and Apple.

In 2020, the General Manager, Ms. Katherine C Jons, decided to quit TITANS Co. for a personal reason.

It was then when Mr. De Pacrio decided to hire YOU to substitute Ms. Katherine C. Jons. Ms. Jones left some data in her office for the use of the next manager:

Prices and demand for laptop computers (all brands together regardless of the color) during the last three years:

                   2018    2019   2020

Price	$250	$300	$400
Quantity	800	1,000	2,000

COSTS

Rent of warehouse in downtown Miami $24,000 per year

Electricity $500 per month

Advertising $50 per computer

Maintenance $30 per computer

AVERAGE PRICE PER LAPTOP COMPUTER IN 2020: $400

AMOUNT OF LAPTOP COMPUTERS SOLD IN 2020 70% of 2020 demand; that is 1,400 computers

Taxes every year: 15%.

Non-taxable income in 2018 $125,000

Non-taxable expenses in 2018 $10,000.

As the new General Manager replacing Ms. Jons, YOU were asked by Mr. De Pacrio to inform him the following:

1. Prepare a business plan for the company (you will have to do a little research to make your plan more accurate and professional).
2. Project the demand and price for year 2021
3. What is the elasticity of demand for laptop computers for the period 2018-2020?
4. What do you recommend doing with the price based on this elasticity?
5. What is the break-even point? What does this mean?
6. Display a SWOT analysis
7. Please show me a cash flow based on data of 2020 and explain your recommendation.

At the beginning, you felt intimidated and nervous. Nevertheless, soon you remembered your “Small Business Management” professor, Doctor Patricio Torres-Palacio, and how he had taught you these analyses.

Elasticity of Demand = ∆Q/Q

∆P/P

Break Even = Average Annual Fixed Costs .

Price – Variable Costs

Statement of Cash Flow

Taxable income

- (Taxable Expenses)

Profits before Taxes

-(Taxes)

Profits after Taxes

+ Non-Taxable Income

- Non-Taxable Expenses

Cash Flow

Create a business plan for this company. IN OWN WORDS NOT FROM OTHER WEBSITES

Answer rating: 100% (QA)

1 Mr De Pacrio should continue to advertise the company heavily in order to increase awareness of the brand and attract more customers Additionally he ... View the full answer