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 the calculations, please!

Exhibit 8 A COUPLE OF SQUARES QUOTE SHEET FOR A 2010 SALE QUOTE SHEET OMPANYNAME:ONTACTPERSON:RetailMerchanBERN&RACH Retail Merchandisers 2010 ATE: Apr-10 3UDGET: QUANTITY Aanager Signature: All merchandisers SELLINGPRICEPROFIT:8%$120.00$10.10 Exhibit 8 A COUPLE OF SQUARES QUOTE SHEET FOR A 2010 SALE QUOTE SHEET OMPANYNAME:ONTACTPERSON:RetailMerchanBERN&RACH Retail Merchandisers 2010 ATE: Apr-10 3UDGET: QUANTITY Aanager Signature: All merchandisers SELLINGPRICEPROFIT:8%$120.00$10.10