You are supporting a consulting case for a mid-sized B2B software company that is considering a list-price reduction to accelerate growth. The case team wants a simple financial model in Kearney Analytics Workbench to test whether higher volume would offset lower unit economics. Management evaluates the business on monthly contribution profit, and you should assume fixed operating costs do not change in the next quarter. You have current run-rate economics and management's estimate of demand response to the new price.
| Metric | Current | Proposed |
|---|---|---|
| Monthly customers sold | 4,000 | 5,000 |
| Average selling price per customer | $120 | $108 |
| Variable service and support cost per customer | $42 | $42 |
| Monthly fixed operating costs | $180,000 | $180,000 |
| One-time pricing implementation cost | $0 | $60,000 |
How would you use financial modeling to evaluate this consulting case, and would you recommend the price change based on monthly contribution profit and first-month impact?