Refer to the Case on Master Budget discussed in class. Currently LAF buys raw materials for $7 per Ib. However, a recent study has shown that the dye used in the fabric used as raw material for the flags is harmful for the environment. They can use better quality, environment friendly raw material in their flags, but that would cost $8.25 per lb. Also, variable S&A cost per unit currently is $1.25. This involves using plastic packaging for their product. If they want to use biodegradable packaging materials, the variable S&A cost per unit will become $2. 4. Recommend a strategy to LAF to maintain or increase their original VC NOI for the quarter. You can recommend changes in quantity, costs, price etc. Remember, every 1% increase in price will decrease the quantity demanded by 1%. However, every 1% decrease in price will increase the quantity demanded by 2%. Price changes are only possible in increments of 1%. Do your calculations in the spreadsheet, and limit your answer in the report within 300 words