Portland Brewing Company is a small craft brewer that produces five varieties of beer. The...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Portland Brewing Company is a small craft brewer that produces five varieties of beer. The beers sell for $8 per six-pack, and the company currently sells 10,000 six-packs per month.
The company is considering producing a seasonal beer that will be sold in October, November, and December. The company estimates that at $6 per six-pack, the company will sell 2,000 six-packs. At $7 per six-pack, sales will be 1,000 six-packs. The company also estimates that sales of the seasonal beer will eat into sales of its standard items. Specifically, for every 500 six-packs of the seasonal beer that are sold, 200 six-packs of the standard varieties will not be sold. The variable production costs of all beers is $1.20 per six-pack.
Required
Calculate the incremental profit associated with selling the seasonal beer at $6 per six-pack.
| $4,160 | ||
| $3,800 | ||
| $3,840 | ||
| $3,480 | ||
| $3,080 |
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.