The case study indicated that Kodak's gross margins were around 70%, so the cost of Gold Plus should probably equal $1.047 per unit , or 30% of $3.49. After reducing the 15% price of Gold Plus, Kodak still makes a profit of $1.9195 per unit, which is more than Fujicolor Super G's profit of $1.6005, or 55% of $2.91. It is clear that it is realistic to justify reducing the price of Gold Plus by 15%, bringing the price down to $2.9665. However, a reduction in price could harm the quality image of the cinema product, Gold Plus. Kodak must therefore be very careful if it applies this price.