Math for Business Operations

Applied Accounting with Excel

UNIT06 - Lesson 8

Pricing Recommendation Development

45 minutes
Lesson Overview

Lesson Focus

Synthesize all analysis into comprehensive pricing strategy recommendation

Key Unit Objectives

Enduring Understandings:

  • Pricing decisions require balancing profitability with market competitiveness
  • Cost-Volume-Profit relationships govern business viability and strategic planning
  • Data-driven analysis provides objective foundation for subjective business decisions
  • Sensitivity analysis reveals business vulnerabilities and opportunities

Lesson Activities

Activity 1: Recommendation Framework
10 minutes

Structure for effective business recommendations

Details:

  • Executive summary: Key recommendation and supporting rationale
  • Analysis summary: Competitor benchmarking, CVP modeling, sensitivity insights
  • Implementation details: Specific pricing levels and monitoring requirements
  • Risk mitigation: Scenarios where recommendation might need adjustment
Activity 2: Memo vs. Slide Deck Choice
5 minutes

Teams select presentation format based on audience and content

Details:

  • Memo format: Detailed written analysis with embedded charts and tables
  • Slide deck format: Visual presentation with key insights and recommendations
  • Consider town hall debate format and panel audience preferences
  • Choose format that best showcases team's analytical strengths
Activity 3: Content Development Time
25 minutes

Teams create their pricing recommendation documents

Details:

  • Draft executive summary with clear pricing recommendation
  • Integrate competitor analysis, CVP modeling, and sensitivity insights
  • Create professional charts and tables supporting the recommendation
  • Anticipate potential stakeholder questions and prepare responses
Milestone 2 Requirements

Complete CVP model with comprehensive sensitivity analysis

  • Working CVP model: Accurate break-even and profit calculations
  • Professional visualization: Clear CVP chart with break-even highlighting
  • Sensitivity analysis: Both one- and two-variable data tables
  • Goal Seek scenarios: Multiple target profit calculations
Activity 4: Milestone 2 Checkpoint
5 minutes

Verify readiness for town hall debate preparation

Details:

  • Teams confirm all technical components are working correctly
  • Review draft recommendation for completeness and clarity
  • Identify areas needing refinement before tomorrow's debate preparation
  • Preview Day 9: Town hall debate preparation and rehearsal
Required Materials
  • Business recommendation templates
  • Memo and slide deck format examples
  • Professional writing guides
  • Milestone 2 assessment criteria
Differentiation Strategies

For Struggling Students

  • • CVP Templates: Pre-built model structures with guided formula entry
  • • Visual Calculators: Step-by-step markup vs. margin calculation guides
  • • Peer Partnerships: Pair with students strong in Excel or business analysis
  • • Alternative Assessment: Focus presentation on business insights rather than technical details

For Advanced Students

  • • Advanced Modeling: Incorporate seasonality and demand elasticity into CVP models
  • • Leadership Roles: Facilitate peer critique sessions and support struggling teams
  • • Extended Analysis: Research actual competitor financial statements for deeper insights
  • • Presentation Enhancement: Create interactive Excel dashboards for town hall debate

For English Language Learners

  • • Business Vocabulary: Glossary of CVP and pricing terms with visual definitions
  • • Formula Explanations: Mathematical concepts explained with universal symbols
  • • Cultural Context: Discussion of pricing practices in different economic systems
  • • Collaborative Support: Mixed-language teams with peer translation assistance