Beauregard Case Study_ - Sean McIntyre Beauregard Textile Case Study Beauregard is currently facing a complicated predicament of how to price their

Beauregard Case Study_ - Sean McIntyre Beauregard Textile...

This preview shows page 1 - 2 out of 2 pages.

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.
Image of page 1
Image of page 2

You've reached the end of your free preview.

Want to read both pages?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes