Oasis, Inc.: Financial Analysis

Words: 832
Pages: 4
Open Document
Oasis, Inc. has recently introduced a new product, the Tranquility 5000, but critical information requires analysis before Oasis can begin manufacturing their luxury massage chair on a large scale. In preparation of launching their product, Oasis has obtained raw data based on various price points to estimate weekly supply and demand. This analysis will analyze that data in order to make a pricing recommendation to the managers and owners of Oasis, Inc.
During an initial product release, Oasis released the Tranquility 5000 on a per-week basis to gather demand data at a variety of price points. From the raw data, a linear regression model is used to determine the demand function. However, before running the regression, it is necessary to first …show more content…
Using this demand function, and the Price Elasticity of Demand Function E(p) (see equation 2), the price that Oasis can charge is estimated by setting the function equal to 1. The elasticity function is set equal to 1 because demand is considered “unit elastic” at a value of 1, meaning that if more is charged, the raise in price would not offset the loss in demand, and total revenue would decrease. Conversely, if the price is lowered, the raise in demand would not offset the loss in price per unit, and total revenues would decrease. After solving for p in the Elasticity Function, the unit elastic price that Oasis can charge for the Tranquility 5000 is …show more content…
Their data is also given on a per-week basis to allow for an accurate comparison between the supply and demand models. As with demand, it must first be determined if there is a relationship between supply and price before running the regression. A scatterplot is shown is figure 2 with a best-fit line that clearly shows a linear trend. The trend is positive this time, showcasing the tendency for Oasis to produce a greater supply as the price point increases. From the data, both ANOVA and coefficient tables are produced (see tables 3 & 4). The model is found to explain 85% of the variance in price with a standard error of only 1.97. Additionally, a significant relationship is determined at the ⍺ = .05 level, t(108) = 24.40 with the resulting p < .0001. Again, given the statistically valid relation between supply and data, it is appropriate to use the weekly Supply Function S(p) given by the data (see equation
Show More

Related Documents: Oasis, Inc.: Financial Analysis

Global Expansion Strategy Of Oasis Bicycles

Table of Contents Introduction about Oasis Bicycles 2 Global Expansion Strategy 2 Primary Objectives of the Human Resources Manager: 3 An Executive Summary: 4 Pest Analysis 4 A Strategic HR plan for the next 12 months: 9  Human Resources Planning 9  Strategic Resourcing 9  Reward Management 11  Performance Management 11  Learning and Development 12 Application of a strategic HRM model 13  Advantages & Disadvantages of the Contingency Approach 13 Managing…

Words 4675 - Pages 19

Financial Analysis Essay

drugstore chain to offer prescription labels in multiple languages chain-wide. In 2011Walgreens President and CEO Greg Wasson joined First Lady Michelle Obama at the White House to announce Walgreens commitment to convert or open at least 1,000 food oasis stores across the country over the next five years, helping to serve people in communities that currently lack access to healthy and affordable foods including fruits and vegetables. Walgreens is in the Health and Wellness Industry. A consumer can…

Words 1635 - Pages 7

Essay about Best Buy Business Strategy

Assignment: Best Buy Business Strategy Introduction and Background Overview of Company Best Buy stores offer a wide variety of consumer electronics, home office products, entertainment products, appliances and related services. These include, Best Buy Mobile which offers a wide selection of mobile phones, accessories and related services. Geek Squad provides residential and commercial computer repair, support and installation services. Magnolia Audio Video Stores offer high-end audio, video…

Words 5329 - Pages 22

Essay on Assignment: Comparative Advantage and Curtin Business School

custodians, their descendants and kin of this land past and present. Syllabus This unit examines the theoretical and policy issues behind growing trade and investment linkages between economies. Introduction This unit involves extensive analysis and application of theories of international economics. The theories are quantitative and qualitative in nature. Examples of the issues that will be covered include why do nations trade, the uncertainty surrounding economic viability of the world…

Words 2091 - Pages 9

Essay about Climate and Topography Analysis

Climate and Topography Analysis Al Barakat GBM-380 May 12, 2014 Daniel Christensen Climate and Topography Analysis Dubai Aerospace and Standard Aero In 2006, Dubai Aerospace Enterprises also known as DAE, launched doors to public. DAE is an internationally known company that directs the aviation industry handling maintenance, repair, overhaul (MRO), and aircraft rental. Dubai Aerospace Enterprises mission and vision statement is simple, but the increasing aviation industry has instituted…

Words 1268 - Pages 6

Marketing Proposal for Chuck E Cheese in China Essay

Marketing Proposal for Diversifying Into China Executive Summary Chuck E. Cheese’s (CEC) is publicly traded company founded by Nolan Bushnell in 19771 in San Jose CA. CEC currently operates over 500 stores domestically and internationally; expanding into countries such as Chile, Saudi Arabia, Puerto Rico, U.A.E, Guatemala and Canada2. CEC mainly provides games, entertainment, party and food for children aged two to fourteen years old within a safe environment. The marketing proposal explores…

Words 4787 - Pages 20

Health Informatics and Home Page Essay

Appendix D Web Resources American Health Information Management Association (AHIMA) ahima.org AHIMA is a professional association representing more than 53,000 health information professionals who work throughout the healthcare industry. This site includes Journal of AHIMA indexes and articles, position statements, practice briefs, frequently asked questions, member forums, a job board, hot topics, legislative issues, the fellowship program, job descriptions, certification information, Body of…

Words 2676 - Pages 11

Essay on Adolescent Chronic Pain And Disability A Review Of Current Evidence In Assessment And Treatment

10070_eccleston.qxd 01/02/2007 11:40 AM Page 117 ORIGINAL ARTICLE Adolescent chronic pain and disability: A review of the current evidence in assessment and treatment Christopher Eccleston PhD1, Jacqueline Clinch MD2 C Eccleston, J Clinch. Adolescent chronic pain and disability: A review of the current evidence in assessment and treatment. Paediatr Child Health 2007;12(2):117-120. Adolescents who suffer from chronic pain also report complex syndrome-associated disability and distress that can…

Words 3583 - Pages 15

Mr_Ranjito Essay

the analysing of information to give knowledge: knowledge from accessing information is the purpose of an information system. The information must be analysed in order for this to be achieved. Information systems provide a range of tools for the analysis of data, such as tables, queries and reports. People make decisions based on the information they receive from an information system. the different types of and purposes for information systems, including systems used to: process transactions.…

Words 5484 - Pages 22

Essay about Politics: European Union and Company

sale, exchange, etc. * Balance of Payments - an accounting record of all monetary transactions between a country and the rest of the world. These transactions include payments for the country's exports and imports of goods, services, financial capital, and financial transfers. * Deficits - An excess of expenditure or liabilities over income or assets in a given period. * Surplus - An amount of something left over when requirements have been met; an excess of production or supply over demand…

Words 8985 - Pages 36