Beauregard Memo - Memo To Mr Ron Collins From Name Date June 3 2013 Re Beauregard Textile Company Triaxx-30 Pricing Background Beauregard Textile

Beauregard Memo - Memo To Mr Ron Collins From Name Date...

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Memo To: Mr. Ron Collins From: Name Date: June 3, 2013 Re: Beauregard Textile Company Triaxx-30 Pricing Background Beauregard Textile Company produces a special fabric called Triaxx-30 that is currently priced at $4 per yard. Calhoun & Pritchard is the only competitor who produces a similar product and their T-30 fabric is $3 per yard. Since raising their prices, Beauregard Textile’s sales of T-30 fabric has decreased and lost approximately $15,000 in revenue. Options Beauregard has to decide if they want to keep the price of T-30 fabric at $4 or decrease it to $3 a yard. They need to take into account the change in sales and costs associated with the changes in volume at both $3 and $4 a yard. Another huge factor that they cannot control but must take into account is what C & P charges. They can either keep their prices where they are at and hope C & P follows their lead and raises their prices as well or they can lower their prices back to $3 to make up for lost sales.
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