Pricing

Ridgeback Sports: should it drop its lacrosse sticks?

Ridgeback Sports, a US maker of women's lacrosse masks and sticks.

Should Ridgeback drop its sticks, and how can it raise overall profit?

Skills tested

• Structure
• Quantitative analysis
• Exhibits and insights
• Synthesis and communication

Concepts

• cost allocation
• activity-based costing
• cost-plus pricing
• contribution margin
• fixed costs do not move with volume
• market-based pricing