Will Bury Scenario Paper
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Running head: Will Bury’s Price Elasticity Scenario
Will Bury’s Price Elasticity Scenario
Cheryl A. Ragland
University of Phoenix, Economics 561
June 28, 2010
Will Bury is an entrepreneur who has developed and patented a new technology that transforms printed words from texted materials and creates files giving customers an option to read material digitally or listen to the material with a realistic synthetic voice. The books and materials that Will transforms digitally for his business comes from the free access of books in which the copy right protection has expired. Will pays a royalty fee of five dollars for each title and this helps to expand the catalog selection of the business.
Because Will believes in his new technology, it is important to address some of the issues that will allow the company to become successful and maximum profits. Some of the issues that Will has to address includes hiring other employees to work for the business (giving him time to spend with his family), and how to put the applications operation together to best service his customers. Will also needs to estimate how many books he should be purchasing and what prices should the business charge for the service. Examining the issues for Will’s business will generate a proposal for recommendations for increasing revenue, achieving ideal product levels by determining how fixed and variable cost can be adjusted to maximize profits. Determining methods for identifying cost reductions is also important.
Recommendations: The first issue is determining whether to hire employees to help with the business.
The major consideration for hiring any new employee boils down to the cost. Estimating cost to hire a new employee begins with the salary Will wants to pay. Will should regulate the salary according to the responsibilities the potential employee will perform, whether the job is full-time or part-time, how many hours of work per day and what...
Will Bury’s Price Elasticity Scenario
Cheryl A. Ragland
University of Phoenix, Economics 561
June 28, 2010
Will Bury is an entrepreneur who has developed and patented a new technology that transforms printed words from texted materials and creates files giving customers an option to read material digitally or listen to the material with a realistic synthetic voice. The books and materials that Will transforms digitally for his business comes from the free access of books in which the copy right protection has expired. Will pays a royalty fee of five dollars for each title and this helps to expand the catalog selection of the business.
Because Will believes in his new technology, it is important to address some of the issues that will allow the company to become successful and maximum profits. Some of the issues that Will has to address includes hiring other employees to work for the business (giving him time to spend with his family), and how to put the applications operation together to best service his customers. Will also needs to estimate how many books he should be purchasing and what prices should the business charge for the service. Examining the issues for Will’s business will generate a proposal for recommendations for increasing revenue, achieving ideal product levels by determining how fixed and variable cost can be adjusted to maximize profits. Determining methods for identifying cost reductions is also important.
Recommendations: The first issue is determining whether to hire employees to help with the business.
The major consideration for hiring any new employee boils down to the cost. Estimating cost to hire a new employee begins with the salary Will wants to pay. Will should regulate the salary according to the responsibilities the potential employee will perform, whether the job is full-time or part-time, how many hours of work per day and what...