Please answer the following (questions 1 to 3), and be prepared to discuss in class.

For questions 1 and 2, it is helpful to focus on an 11.5-inch cushion pad. Discussions in class will be clearer if everyone focuses on the same size of pad.

1. What should a customer be willing to pay for one of Curled Metal Incorporateds (CMI) new cushion pads? What factors are relevant in calculating willingness to pay in this situation?
2. What price should CMI set for one of its new cushion pads? Why?
3. How big is the potential market for this product, and what should be CMIs strategic and marketing objectives in introducing this product?