Hilltop Farms is reevaluating the pricing of its fresh-squeezed grape juice in half-gallon containers. Variable costs...
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Accounting
Hilltop Farms is reevaluating the pricing of its fresh-squeezed grape 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 the owner's equity statement.
Price per Half Gallon | Estimated Demand (Half-Gallon Units) |
$2.60 | 99,000 |
$2.65 | 96,000 |
$2.70 | 93,000 |
$2.75 | 90,000 |
$2.80 | 87,000 |
$2.85 | 84,000 |
$2.90 | 81,000 |
$2.95 | 78,000 |
$3.00 | 75,000 |
$3.05 | 72,000 |
$3.10 | 69,000 |
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