The memo assignment describes the situation and request a recommendation to the problem at hand through an assignment document.

You need to individually identify the relevant analysis tool, calculate the solution, and provide an explanation of their recommendation to the firm.

The case is the following:

Dear Susan,

As you know we have a line of workout subscriptions that have not been producing good margins. The one that seems to be dragging the most is our Whitewater Waist-reducer tutorial set due to the entry of many alternatives such as Bermuda Boating and Awesome Oaring that appeal to those unsavory college student instructors. Specifically, we are taking losses on our sales volume right now and I would like you to take a look at our current pricing scheme. Our sales department has estimated our monthly subscription demand to be Q = 1,340 - 5P and our accounting department has informed me that our cost structure is effectively C(Q) = 88,000 + 2.5Q. We are currently pricing our product at $99 and still losing money. I am seriously considering discounting this price as I think it is too high. Let me know if we should re-address our price point decision, or if we should consider withdrawing from the market. You never can tell with the shifting winds of the exercise market. If we can improve the situation I might be inclined to roll out another advertising campaign to try and boost interest for the subscriptions, so your review is of the utmost importance. On the plus side, our diving waterfall tutorials have been very popular with the 65 and older segment.

Sincerely,