Alabama Southern Biz Café Customer Sensitivity to Pricing Changes Spreadsheet

All the instructions in the files.

You created a forecasting spreadsheet in the Biz Café Operations Excel assignment. It is a “what if” toolfor you to use to make business decisions. The spreadsheet in itself is beneficial in understanding whatperformance or fiscal measures are required to meet goals.What is not considered is that when you make changes in your business there is reaction. As anexample, in the forecasting spreadsheet a change in the price of a cup of coffee will be reflected in yourrevenue, gross profit and net profit. An increase in price will result in higher earnings and a decrease inprice will result in lower earnings. We are assuming that there is no change in demand because of achange in price. In this assignment we will look at how customer purchasing behavior affects cup sales.Appropriate pricing is an inexact science but does have a lot of science behind it under what is calledprice theory. The consumer which are your customers make their purchasing decisions for variousreasons. Although we can predict general behavior using historical sales data, surveys, focus groups andpredictive analytics; any result will have some variance based on how the price sensitivity is calculate