Reducing the price of Blaine's product line might enhance the company's ability to

compete on price. From a financial perspective, does reducing the selling price of an

item or items automatically mean a higher profit because more items will be sold?

Also, when a company has a long history of being higher priced than its

competitors, will a price reduction be seen as a positive by its customers? What

might customers think if all of sudden Blaine reduces its prices to compete with a

Wal-Mart toaster brand?

Blaine-Kitchenware, Inc: Capital Structure