Reza is also taking a close look at the manufacturing of a new product, designed picnic towels. Beach Gear had always produced picnic towels in various colours. However, one customer started adding interesting designs to the towels, such as cartoons, beach elements, and catchy slogans. Towel sales skyrocketed and other customers adopted the idea. Now, Beach Gear is considering adding designs to the towels on its own prior to selling. It typically sells packs of 50 towels for $150. With designs, it would aim to sell 20 towels for $140. There is also the option of continuing to sell mainly basic towels to retailers and adding designed towels to the new outlet for $10 each.

Prepare a business report for Reza. Discuss all relevant issues, including pros and cons of each course of action. Outline any questions/inquiries which should be directed to Reza and why the information is important to certain decisions.