Maple Grove Farms is reevaluating the pricing of its fresh-squeezed apple cider in half-gallon containers. Variable...
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Maple Grove Farms is reevaluating the pricing of its fresh-squeezed apple cider in half-gallon containers. Variable costs per container are $1.55. Based on market study, management has determined that the price per half-gallon should be between $2.55 and $3.05. Identify the price to maximize contribution margin and prepare a comprehensive break-even analysis.
Price per Half Gallon | Estimated Demand (Half-Gallon Units) |
$2.55 | 98,000 |
$2.60 | 95,000 |
$2.65 | 92,000 |
$2.70 | 89,000 |
$2.75 | 86,000 |
$2.80 | 83,000 |
$2.85 | 80,000 |
$2.90 | 77,000 |
$2.95 | 74,000 |
$3.00 | 71,000 |
$3.05 | 68,000 |
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