Sean McIntyre Beauregard Textile Case Study 11/22/15 Beauregard is currently facing a complicated predicament of how to price their Triaxx-30 fabric. They recently raised the price from $3 to $4 in the past year and this has caused them to lose a considerable amount of market share due to the fact that their main competitor, Calhoun & Pritchard, has maintained a price of $3. There are four possible situations that may arise given the fact that Calhoun & Prichard may raise their price to $4 as well due to recent financial constraints they are facing. 1. Beauregard: $4, Calhoun & Pritchard: $3 2. Beauregard: $3, Calhoun & Pritchard: $3 3. Beauregard: $4, Calhoun & Pritchard: $4 4. Beauregard: $3, Calhoun & Pritchard: $4 1. The first case is the current situation with Beauregard being priced at $4 and Calhoun & Pritchard being priced at $3. This situation yields Beauregard 75,000 units in volume. This would yield $300,000 in sales with variable costs adding up to $297,000. This provides Beauregard with a contribution margin of $3,000.
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- Fall '15
- Contribution Margin, Beauregard, Calhoun & Pritchard