1. Calculate the impact of dropping Grill A. Assume no other changes to the plan.

2. Calculate the impact of reducing the Grill C price to $75, with the expectation that the volume of

that product will increase to 220,000 units. Assume no other changes to the plan.

3. Calculate the impact of a 10,000-unit decrease in Grill A and a 10,000-unit increase in Grill C

volume due to a change in advertising focus. Assume no other changes to the plan.

4. Calculate the impact of a $5 decrease in Grill Cs price and a change in advertising focus, leading

to a 10,000-unit decrease in Grill A volume and a 30,000-unit increase in Grill C volume. Assume

no other changes to the plan.

5. Prepare a revised 2009 profit budget assuming the owners chose option 2lowering the price

of Grill C to $75 and expecting sales volume of that grill to increase to 220,000 units.

6. The actual results for 2009 are shown below (Table 1). Was the 2009 net income more or less

than what should have been expected given these actual volumes and prices? If the results were

different, why?