Evergreen Farms is reevaluating the pricing of its fresh-squeezed cranberry juice in half-gallon containers. Variable costs...
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Accounting
Evergreen Farms is reevaluating the pricing of its fresh-squeezed cranberry juice in half-gallon containers. Variable costs per container are $1.60. Based on market study, management has set a price range of $2.60 to $3.10. Identify the price that maximizes contribution margin and prepare a sales revenue report.
Price per Half Gallon | Estimated Demand (Half-Gallon Units) |
$2.60 | 97,000 |
$2.65 | 94,000 |
$2.70 | 91,000 |
$2.75 | 88,000 |
$2.80 | 85,000 |
$2.85 | 82,000 |
$2.90 | 79,000 |
$2.95 | 76,000 |
$3.00 | 73,000 |
$3.05 | 70,000 |
$3.10 | 67,000 |
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