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MemoTo:Mr. Ron CollinsFrom:NameDate:June 3, 2013Re:Beauregard Textile Company Triaxx-30 PricingBackgroundBeauregard Textile Company produces a special fabric called Triaxx-30 that is currently priced at $4 peryard. 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 lostapproximately $15,000 in revenue.OptionsBeauregard 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 atboth $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 andraises their prices as well or they can lower their prices back to $3 to make up for lost sales.