The Company of Corporate Conglomerations (3C) has recently developed a new product. The product is expected to be sold to the retailer at $30 a unit. 3C estimates the product's cost to manufacture and ship to be $10.

The sales forecast was 2,000,000 units for the first year. This was lower than their target. Therefore, 3C decided to increase the quality and maintain the price of the product to increase demand. The product will now cost $15 dollars total for manufacturing and shipping for 3C while the manufacturer's selling price remains the same.