You are the owner of a bakery in GTA. You have a loyal clientele and your product/service is positioned well in the marketplace. The retail price your customers pay for bread or pastry is exactly the same as at your competitors. However, the wholesale price you pay for your gluten-free flours (from which you make your pastries) has just increased by 25%.

You know that you cannot absorb this increase and that you must pass it or to your customers. However, you are concerned about the consequences of an open price increase. You must forecast the possibilities of two alternative price-increase strategies that address these concerns. Also, to include: consider the external and internal variables that might impact your ability to implement each of these strategies.

Hint: think about the fixed and variable costs of this operation - how might these be incorporated in your answer.

To be answered individually. Document your answer in no more than two pages.