Using the mini case on personal branding below, provide responses to these questions

1. How many users would have to buy at $45 to at least meet last year's profits?
2. Should Impress4Less drop prices further? Could they raise prices above $50?
3. What assumptions were made?

MINI-CASE Personal Brand Management Impress4Less is a company founded by two b-school recent alumni. They both had taken advantage of their school's career placement services, and thought they could offer additional supplemental services and advice. They're constructing a website where anyone looking for help in positioning themselves for a new job might go to download templates of resumes, examples of personal brand brief elevator pitches,' videos of strong and weak interview answers, and the like. Their plan is to offer some of those basics for free, to get people onto the website. But what they're really interested in selling is their consultation time, consisting of feedback on resumes and help with practice interviews. they're working with their former school's entrepreneurial dub in proposing to launch their online premium service for $50. This past yearserved as a test market at the b-school. Given the friendly partnership, and as a learn- ing opportunity for the students, Impress4Less shared some information on basic cost structures. Their fixed costs on this project were $3,000, and variables costs were $10 per user exchange. Currently at the b-school, the situation is as it looks in the figure below (to the left); that is, 200 users purchased their services during the last academic year at the $50 price. But the dub members get regular feedback (from dassmates) that the $50 price tag seems steep, so they're asking Impress4Less for a price cut of 10%, essentially going to the figure at the right. Case Discussion Questions 1. How many users would have to buy at $45 to at least meet last year's profits? 2. Should Impress4Less drop prices further? Could they raise prices above $50? 3. What assumptions are you making? Current Contribution pros $50 Drop price lost to 109% (to $49) price out Contribution Contribution More units, mon contribution Variable Lovening Variable Covenng More variable _ variable cost $10 variable cost $10 costs Current sales = 200 units Now salon = 7 units