Montreal Gloves.docx - Montreal Gloves 1 Should MG introduce new line Explain your reasoning MG should not introduce the new line Looking at the excel

# Montreal Gloves.docx - Montreal Gloves 1 Should MG...

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Montreal Gloves 1. Should MG introduce new line? Explain your reasoning. MG should not introduce the new line. Looking at the excel spread sheet, the current line alone generates a profit of \$1,575,000 which is more than the projected profit of the next year with the new line at \$1,525,000. Since the profit is decreasing after the next year, MG should not introduce the new line of gloves. 2. Is current price maximizing profit for Stay Dry? [Hint: Use equation (1) to determine profit.] At what price, profit will be maximized? No, the current price is not maximizing the profit for Stay Dry. After determining the profit after increasing the retail price by 0.5 from \$25 to \$34, the maximum profit peaks when

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• Fall '13