This case provides you with a hypothetical new product that has the potential to

This case provides you with a hypothetical new product that has the potential to

This case provides you with a hypothetical new product that has the potential to disrupt an industry. It allows you to practice very important skills that are key to strategic management and are core course concepts, as well as very useful as you embark on your business career:
1) What should customers be willing to pay for a new product?, 2) Knowing WTP and cost to produce, how should the new product be priced?, 3) How big is the potential market for a new product? 4) How best do we produce, distribute and market the new product?
With the above in mind, please answer the provided questions. There are four total questions and you should answer each completely and show your work. You have the ability to attach supplemental materials (Excel files, etc.) if you would like. Your work will be saved as you go so you can leave and come back to the work sheet. Only hit the submit button when you are completely finished.
This should be entirely your own work. Do not share your work with anyone else. Be prepared to discuss your results at class so make sure you have access to your answers when we meet.
KEY NOTE: Just focus on the 11.5-inch cushion pad. Also, The production cost estimates provided are per pad – not per 250 pads. The note at the bottom (“Estimated volume was 250 cushion pads per month”) is just to help you understand that CMI’s capacity is limited. To produce more than 250 pads per month would require more investment.