During the summer of 2013, the company founder and operations manager of Hockley Valley Brewing Co. Inc., a microbrewery situated in rural Ontario, was reviewing the company's product mix. Sales at a recent summer festival showed strong demand for light beers, rather than the dark ales that made up the majority of Hockley's sales. Not only did the company compete with large multinational brewing companies, but they faced stiff competition from the established and new microbreweries that were springing up all over Ontario to meet consumer demand for fresh, local, and unique beers. They had to decide whether the company should launch a new lager to further penetrate the light beer market; if so, they also had to make recommendations on pricing, distribution, and promotional strategies for the new brand.

4. At what price should Hockley Classic be sold? Why? At this price, what would be the unit contribution?