TexasFluff is a producer of pillows. Suppose TexasFluff currently sells 7,500 pillows a month at a price of $10.00 per pillow. Variable Costs are $4.50 per pillow, and (non-incremental) fixed costs are $15,000. The company is enjoying stable demand with its current pricing, but management is looking for ways to increase profitability. One suggestion is that the company reposition their pillow as a luxury product, justifying a higher price. If successful, TexasFluff believes that it could charge 20% more per pillow than it does now