Sales manager and the controller must decide on the price of textiles, which has lost significant market share as a result of the recent rise in prices. Information on production costs and prices on the behavior of Beauregard and his only rival is available for analysis. Case provides an opportunity to practice in the analysis of the deposit, with the fixed and variable costs, according to a report of the typical cost. It also checks the students' ability to recognize the need to consider the situation from the point of view of a competitor. Finally, it presents a dilemma for the two firms concluded where everyone would prefer a set of prices, unfavorable to others, so that prices are likely to be either unstable or stable at best for both parties. Class may close with the students attempt to develop a pricing strategy that would achieve the optimum level. "Hide
by Francis J. Aguilar Source: HBS Premier Case Collection 4 pages. Publication Date: October 19, 1990. Prod. # 191 058-PDF-ENG
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