2.1) (10 points) Suppose you are a marketing manager in Tim Hortons Inc (THI). The medium-size iced cappuccino (Iced Capp) is the most popular drink in THI during summer and so THI wants you to suggest the best strategy to increase total revenue from selling Iced Capp.

From the marketing report, it shows that customers can be divided into two separate groups according to their likely responses to any price discount.

The following table shows how the two groups respond to a 25% discount.

Group A (sales per period)

Volume of sales in units of hundreds (Q1)

(before the 25% discount):

20

Volume of sales in units of hundreds (Q2)

(after the 25% discount)

24

Group B (sales per period)

Volume of sales in units of hundreds (Q1)

(before the 25% discount):

18

Volume of sales in units of hundreds (Q2)

(after the 25% discount)

25