Variable Identification-Lemonade Stand Game

406 Words2 Pages
Variable Identification Assignment Variable Identification Assignment The Lemonade Stand Game is a great way for one to learn about quantitative analysis and variables. Every aspect of the game is present in what organizations experience today. Variables The Lemonade Stand Game provided the owner, or in this case, myself with a number of variables to consider when setting the price of my lemonade. One of these variables is the price of my products. I needed to make sure I would make enough money by charging a certain amount per cup in order to afford the ingredients needed. The cost of products can also be considered a variable due to the fact that supplies can spoil and the need of products can drive up the cost of my supplies. Another variable in determining price per cup is the weather. The hotter and more humid the weather is, the more customers are willing to pay per cup. When there is a cooler temperature, the lemonade is in less demand therefore in order to cover me costs and make money, I would need to charge less. Variable Table Variable | Code | Measurement Scale | Weather | 100-85=A, 84-70=B, 69-55=C, 54-30=D | Scale = Degrees15 Degree Increments | Cost of Supplies | X=Cost of Goods for the day | Scale= $ | Marketing and Sales Strategy Marketing and sales is all based on my product quality. I perfected my recipe and after that, I provided a sales strategy of good lemonade at an affordable cost. My marketing strategy is word of mouth marketing from my customers to increase my Lemonade Stand popularity. Track Revenue, Cost, and Profit Tracking revenue per day is by taking the amount of sales and subtracting the cost of supplies each day. Tracking the cost of each day is determined by adding up the amount of total supplies purchased that day. Profit per day is determined by net revenue at the end of each day. Some days, revenue is in
Open Document