Finodes Company produces and sels picture frames One partcular frame for 810 phetos was as instant success in the market, buf rocenty competitors have come cut wit comparabie frames Phodes has been charging $12.50 wholesale for the framen, and sales have fallen from 13,000 units last year fo 6,600 unds this year. The product manager in charge of this frame is consideting lowering the price to $11,00 per frame. He beleves sales will rebound to 13,000 unts at the iower price, but they will fal to 5 .000 units at the $12.50 poce. The int variable cost of producing and seing the frames is $5,00, and $104,000 of faed cost is assigned to the frames. Requirements 1. Assuming that the only prices under consideration are $11.00 and $12 so per trame, which pnice wit load to the largest peofe for Rhodes? Explain why. 2. What whective considerations might affect your prising dechion? The Intal krofit at the 511.00 price would be 1 whereas the proti at the $12.50 price would bes The price gor frame should be chosen as a resuls in greater grofits Finodes Company produces and sels picture frames One partcular frame for 810 phetos was as instant success in the market, buf rocenty competitors have come cut wit comparabie frames Phodes has been charging $12.50 wholesale for the framen, and sales have fallen from 13,000 units last year fo 6,600 unds this year. The product manager in charge of this frame is consideting lowering the price to $11,00 per frame. He beleves sales will rebound to 13,000 unts at the iower price, but they will fal to 5 .000 units at the $12.50 poce. The int variable cost of producing and seing the frames is $5,00, and $104,000 of faed cost is assigned to the frames. Requirements 1. Assuming that the only prices under consideration are $11.00 and $12 so per trame, which pnice wit load to the largest peofe for Rhodes? Explain why. 2. What whective considerations might affect your prising dechion? The Intal krofit at the 511.00 price would be 1 whereas the proti at the $12.50 price would bes The price gor frame should be chosen as a resuls in greater grofits