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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 734 |
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This may drive other retailers to want a lower price on what is seen as an equal in quality product. An ethical issue needs to be dealt with here and the decision will be dependent upon management's ethics. If Baldwin does have to decrease their price to match there will be some financial implications...
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If Baldwin does have to decrease their price to match there will be some financial implications. Specifically, if they were to stay at current capacity, Baldwin would have to cut their fixed overhead by about 43.78%.
In the short run, the Challenger deal looks profitable. Reworking some of the current inventory can eliminate some of the costs immediately and get the Challenger bikes out there quickly...
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