White Water Rafters, Inc., (WWR) a competitor of yours, provides rafting tours on the Colorado River.WWR pays tour guides fixed salaries of $170,000 per year.You are the owner ofBlack Water Rafting(BWR), and you pay your tour guide salaries based on a per rafter rate of $42.50.Rafters are currently charged $50 per tour by both of the rafting companies.You both expect to provide 4,000 tours during the year.

In an effort to increase their business, WWR drops its price to $40 per rafter and expects to serve 6,000 rafters, leaving your company (BWR) with the remaining 2,000 rafters.What do you do?Can you meet that price?Can you charge less than $39?(you can use qualitative and quantitative possibilities)

Conceptual Connection:Using the discussion board, describe what would you for a defensive strategy? Why?