Bellmore Heating Oil

Case study: Bellmore Heating Oil
a.         What should the price of a gallon of fuel oil represent to a customer? What do you get for that "price"?
b.         What is the intent of the Guaranteed Price Program (GPP) and what are the benefits and risks to the customer should they elect to participate? Is it a fair program? Why or why not?
c.         What is the ethical requirement for a dealer to rebate some or all of the price difference when the price goes below that which was mutually contracted to by both the dealer and customer?
d.         What should Bellemore’s management do relative to matching the rebate? How would you approach this?