Context and figures can be found here: https://services.hbsp.harvard.edu/services/proxy/content/45197154/46825013/94c30decc568e3bdbc5a05505bf7c58d

Questions:

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 2 lowering 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?

Table 1. 2009 results
	Grill A	Grill B	Grill C
Price	$150	$110	$75
Volume (units)	115,000	110,000	225,000