PAST EXPERIENCE INDICATES THAT THE SALES VOLUME OF ITEM 2 RELATIVE...

1. Past experience indicates that the sales volume of Item 2 relative to the sales volume

of Item 1 is fairly constant. Netco is considering an 10% price increase for the coming

year for Item 1, which will cause sales of Item 1 to decline by 20%, while simultaneously

causing sales of Item 3 to increase by 5%. If Netco institutes the price increase for Item