Autumn Harvest is reconsidering the pricing of its fresh-squeezed pear juice in half-gallon containers. Variable...
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Accounting
Autumn Harvest is reconsidering the pricing of its fresh-squeezed pear juice in half-gallon containers. Variable costs per container are $1.80. Management has set a price range between $2.80 and $3.30. Considering the estimated demand at different prices, determine the optimal price to maximize contribution margin and prepare the profit and loss statement.
Price per Half Gallon
Estimated Demand (Half-Gallon Units)
$2.80
90,000
$2.85
87,000
$2.90
84,000
$2.95
81,000
$3.00
78,000
$3.05
75,000
$3.10
72,000
$3.15
69,000
$3.20
66,000
$3.25
63,000
$3.30
60,000
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