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Case Scenario 1 A competitor sells a tractor for $14,000. Your company has been working on a new product to enter the market and your marginal cost is $3500. ll'our new tractor is superior in some ways and is inferior in other ways. It is slower so its relative value is decreased by $100!) but it requires less maintenance, which is worth $3500 per tractor. Questions: 1} What is the price of the nearest comparable alternative product to your tractor? 2} What is the differential value of your new tractor in comparison to the competitor product? 3} What is the Exchange Value of the new tractor? 4} What range would you suggest the tractor be priced at on introduction? Case Scenario 2 A retailer is considering a 33% off sale on blenders currently priced $54. The retailer pays $29 per blender to the manufacturer. Questions: 1} What is the initial contribution? 2} What is the proposed sale price and the percent change in price captured per unitsold? 3} What is the volume hurdle that must be achieved for the sale on blenders to improve profits? 4} Suppose that rather than decreasing price, the retailer opts to increase price to $59. What is the allowable loss in number of units sold that would still leave the retailer in the same prot position