2. The proposed promotional campaign without the Virginia contract, scenario C, has the greatest contribution margin, as
shown in the calculations above. Strategic issues for the decision between scenario B and scenario C include the reliability
of the projected sales-volume increase in commercial paint and the assumption that the volume of commercial paint can be
doubled without increasing fixed costs, other than the cost of the promotion. A strategic opportunity, on the other hand, is
that the company (Meyer Paint) can move from a relatively low contribution margin product line (traffic paint) to a relatively
high contribution product line (commercial paint). Suppose, for example, that the sales of commercial paint increase by only
30% rather than 100% (an increase to 49,400 rather than 76,000 gallons). Note that scenario C would now be the least profitable
of the three scenarios.