Pricing Action: In the beginning of Case B, it is revealed that ACOS determined they would take a price increase that would guarantee a 10% margin. Upon investigation of current pricing and margin in the cost data in Case A, Exhibit 8, you could find their current margin is at 9.1% (= [(120-109.09)/120]x100). Do you think the 10% margin would be good enough to meet their financial goal? What level of price increase would be needed to take them from $1.3 MM in Sales to their sales goal of $1.8MM, assuming quantity is stable. Show calculations.

Exhibit 8 Exhibit 8