Table 3.

Sunbest Demand and Supply Conditions

Operating Environment Price of Sunbest

for Demand
(P)
Optimistic Scenario 1
$6.00
2
5.80
3
5.60
4
5.40
5
5.20
6
5.00
7
4.80
8
4.60
9
4.40
Pessimistic Scenario 10
4.20

Price of Soda
(PS)
$4.90
4.80
4.70
4.60
4.50
4.50
4.30
4.20
4.10
4.00

Operating Environment Price of Sunbest

for Supply
(P)
Optimistic Scenario 1
$6.00
2
5.80
3
5.60
4
5.40
5
5.20
6
5.00
7
4.80
8
4.60
9
4.40
Pessimistic Scenario 10
4.20

Price of Labor
(PL)
$16.75
17.00
17.25
17.50
17.75
18.00
18.25
18.50
18.75
19.00

Disposable Income
(Y)
$67,500
66,500
65,500
64,500
63,500
62,500
61,500
60,500
59,500
58,500

Temperature
(T)
81.25
81.00
80.75
80.50
80.25
80.00
79.75
79.50
79.25
79.00

Cost of Capital
Temperature
(PK)
(T)
7.50
81.25
8.00
81.00
8.50
80.75
9.00
80.50
9.50
80.25
10.00
80.00
10.50
79.75
11.00
79.50
11.50
79.25
12.00
79.00

CASE 3

Spreadsheet Analysis of Sunbest Demand and Supply Conditions

Operating Environment Price of Sunbest

for Demand
(P)
Optimistic Scenario 1
$6.00
2
5.80
3
5.60
4
5.40
5
5.20
6
5.00
7
4.80
8
4.60
9
4.40
Pessimistic Scenario 10
4.20

Price of Soda
(PS)
$4.90
4.80
4.70
4.60
4.50
4.50
4.30
4.20
4.10
4.00

Operating Environment Price of Sunbest

for Supply
(P)
Optimistic Scenario 1
$6.00
2
5.80
3
5.60
4
5.40
5
5.20
6
5.00
7
4.80
8
4.60
9
4.40
Pessimistic Scenario 10
4.20

Price of Labor
(PL)
$16.75
17.00
17.25
17.50
17.75
18.00
18.25
18.50
18.75
19.00

Operating Environment
for Demand & Supply
Optimistic Scenario 1
2
3
4
5
6
7

Disposable Income
(Y)
$67,500
66,500
65,500
64,500
63,500
62,500
61,500
60,500
59,500
58,500

Cost of Capital
(PK)
7.50
8.00
8.50
9.00
9.50
10.00
10.50
11.00
11.50
12.00

8
9
Pessimistic Scenario 10

Supply Conditions

Temperature
(T)
81.25
81.00
80.75
80.50
80.25
80.00
79.75
79.50
79.25
79.00

Demand if
All Factors Change
(QD)
12,062,500
14,450,000
16,837,500
19,225,000
21,612,500
25,000,000
26,387,500
28,775,000
31,162,500
33,550,000

Quantity Demanded if
Price Chg. Only
(QD)
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000

Demand if
Temp. Chg. Only
(QD)
25,062,500
25,050,000
25,037,500
25,025,000
25,012,500
25,000,000
24,987,500
24,975,000
24,962,500
24,950,000

Temperature
(T)
81.25
81.00
80.75
80.50
80.25
80.00
79.75
79.50
79.25
79.00

Supply if
All Factors Change
(QS)
33,237,500
31,590,000
29,942,500
28,295,000
26,647,500
25,000,000
23,352,500
21,705,000
20,057,500
18,410,000

Quantity Supplied if
Price Chg. Only
(QS)
33,000,000
31,400,000
29,800,000
28,200,000
26,600,000
25,000,000
23,400,000
21,800,000
20,200,000
18,600,000

Supply if
Temp. Chg. Only
(QS)
24,812,500
24,850,000
24,887,500
24,925,000
24,962,500
25,000,000
25,037,500
25,075,000
25,112,500
25,150,000

Surplus or Shortage
All Factors Change
21,175,000
17,140,000
13,105,000
9,070,000
5,035,000
0
-3,035,000

Surplus or Shortage
Price Chg. Only
33,000,000
26,400,000
19,800,000
13,200,000
6,600,000
0
-6,600,000

Surplus or Shortage
Temp. Chg. Only
-250,000
-200,000
-150,000
-100,000
-50,000
0
50,000

-7,070,000
-11,105,000
-15,140,000

-13,200,000
-19,800,000
-26,400,000

100,000
150,000
200,000