The Lemonade Stand

Throughout the experiment of creating and selling lemonade we learned many things. We identified mistakes we made and turned these mistakes into a skills. These valuable lessons and experiences can be shown though our graphs.

Actual Weather Vs. Gross Profit

The skill that we acquired throughout the process of selling lemonade over the 30-day period was on what days it was ideal to sell lemonade. We learned that people are much more likely to buy lemonade on a hot and sunny day, rather than a rainy or cool and cloudy day. This is shown through our first graph; actual weather vs. gross profit. The option of choosing between advertised weather came to mind and the decision to choose actual weather was more practical, because advertised weather can often be wrong. In the end on a hot and sunny day we gained 30 times as much profit as cool and cloudy.

Cups of Lemonade Made Vs. Advertised Weather

As mentioned previously, we sold many more cups of lemonade on a sunny day rather than on a cool and cloudy day. In spite of this, we made a lot more cups of lemonade on a hot and sunny days than we did cloudy because we expected more people to want lemonade on a hot and sunny day. This would therefore sell more lemonade. We were able to identify this strategy by learning about how many cups were sold depending on our weather. The only downside to this idea was that we were basing our information off advertised weather, which would sometimes can be false. As shown in this graph we made 43.5 cups of lemonade on a hot and sunny day versus 0 cups of lemonade on a rainy day.

Advertised Weather Vs. Actual Weather

As mentioned before, we bases how many cups of lemonade we make off of the advertised weather. This third graph shows all the times the advertised weather was drastically different the the actual weather. For example, if it was hot and sunny we made anywhere from 35-45 cups of lemonade planning to sell all of them all, but if that weather changed to cool and cloudy in the actual weather, we will not sell all of the cups of lemonade that we made. This would then lead us to lose money. Shown by the graph, 80 percent of the time the weather advertised was right or similar to the advertised weather, and 20 percent of the time the advertised weather was wrong

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Assets Vs. Actual Weather

Our last graph and possibly the most important one, is assets versus days on the market. This graph shows our assets through the trend line of assets throughout the 30-day period. As you can see it is an upward trend, but you can also see some drops in assets. Those drops in assets can be a result of many things, predicted weather being false or experimenting with advertising or how much we should charge for each glass of lemonade. The main idea of this graph is to show that our assets are in an upward trend over the 30-day period. This shows that our business is growing and the valuable lessons we learned throughout the month will help us prosper in the future.

In conclusion, we would use the dragons or sharks money to move locations and purchase a better weather source. As you could tell through all of the graphs, our business of selling lemonade relies on weather and if we could more to a climate where it is warm year-round, with little rain, we could sell much more lemonade.