Market Supply and Demand: For 2021, Cottage Living is expecting final sales to be 50,000 units (100% of the units manufactured). The previous consultants had collected and studied market data for Cottage Living's sales region and approximated the total market demand and supply schedules for high quality composite Muskoka chairs in 2021: Price Demand Supply $280 1,500,000 100,000 $310 1,400,000 200,000 $340 1,300,000 400,000 $370 1,200,000 600,000 $400 1,100,000 800,000 $430 1,000,000 1,000,000 $460 900,000 1,200,000 $490 800,000 1,400,000 $530 700,000 1,600,000 Mr. White feels this analysis is reasonable given that all competitors also have a selling price very close to $430 and since the average variable production costs for Cottage Living chairs is $200 per chair in the current Bracebridge facility it would make sense that market supply would be very low at a retail price of $280. The previous consultants determined that for the next 3 years (2022, 2023, and 2024). There were 3 equally likely scenarios for the market supply and demand: Worst Case: The increased demand for 'outdoor living' products in 2019 and 2020 could have been largely due to the unique conditions created by the pandemic. If this is the case they expect that the 2022 demand for composite Muskoka chairs will fall by 600,000 units at every price level and remain at those levels until 2024. Moderate Case: The increased demand for 'outdoor living' products in 2019 and 2020 could have been part of a longer term trend for consumers and was possibly not affected by the pandemic. If this is the case they expect that 2022 demand will stay roughly at 2021 levels until 2024. Best Case: The increased demand for 'outdoor living' products in 2019 and 2020 could have been part of a longer term trend for consumers and may have been negatively affected by the pandemic. If this is the case they expect that demand will increase by 500,000 units at every price level and remain at those levels until 2024. In this scenario it would be likely that supply was also negatively affected by the pandemic and therefore market supply would also quickly increase in 2022 by 200,000 units at every price level and remain at these levels until 2024. Given the competitive nature of the industry Cottage Living has very limited price control and they will set their prices at the market rate for 2022-24. Mr. White needs you to determine the market price for premium, composite Muskoka Chairs for 2022-24