EWMBA 201aFall 2009—VárdyCase Preparation Discussion Questions: Colonial HomesAnswer and be prepared to discuss the following questions:1.Before the Davey price increase, was Colonial Homes’ price too high or too low? What evidence do we have?2.Were the proposed 1989 prices profit-maximizing under the assumption of a 2.5% price increase from Davey Lumber? If not, what adjustment should be made and what would the predicted profits be?3.How should Noel adjust prices from the original proposal if Davey’s prices
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