1. ADIOS JUNK MAIL Abhisek Salecha – 361 Ronak Shah- 336

2. Data selection procedure Data chosen was such that it followed the constraint of being in the price range (0 - $100) The Outliers were removed

3. The Initial Data analysis CheapBargainWorth it too exp.acceptable Mean12.609622.45934.25248.16724.2711864 Mode510255010 Median1020305020

4. Price consideration should be among Bargain, acceptable The mean and median of both these prices ranges from 20 – 25 Analysis is done only for bargain and acceptable prices from the range 20-25

5. Calculation steps Step1: Frequency of the variable ‘bargain’ and ‘acceptable’ to find out the percentage of consumers at a particular price point Step2: Calculation of loss of consumers due to hike in price from $15 (increased price range from 20- 25) Step3: Calculation of increase/decrease of ‘contribution’ Step4: Selecting the price that results in maximum contribution

6. Step1 & 2: Frequency & loss of costumer Cumulative frequency of customers at a given price point Price / Variable $15$20$23$25Customer Loss ABCDB-A ($20)C-A ($23)D-A ($25) Bargain44576075.4131631.4 Acceptable37.85657.57018.219.732.2 Worth It19.429.53246.810.112.627.4

7. Step 3:Contribution Calculation Customers=10000 Original Selling price= $15 Variable cost=$10 ParticularsAmtCalculation Sales15000010000*15 Variable Cost10000010000*10 Contribution50000150000 - 100000

8. New sales = 10000*loss of consumer*new price Variable cost = 10000*loss of consumer*$10 Contribution = new sales – variable cost

9. BARGAINACCEPTABLEWORTH IT $20$23$25$20$23$25$20$23$25 New Sales174000193200171500163600184690169500179800201020181500 Variable Cost870008400068600818008030067800899008740072600 Contribut ion870001092001029008180010439010170089900113620108900

10. Conclusion It has been observed that $23 shows the maximum contribution in all the three scenarios (bargain, acceptable and worth it) It also falls within the desired price range Hence $23 should be the new price