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Cherry Orchard is evaluating the pricing of its fresh-squeezed cherry juice in half-gallon containers. Variable costs per half-gallon container are $1.70. Determine the optimal price to maximize contribution margin and prepare a comprehensive break-even analysis.
•Price per Half Gallon: $2.70; Estimated Demand: 94,000
•Price per Half Gallon: $2.75; Estimated Demand: 91,000
•Price per Half Gallon: $2.80; Estimated Demand: 88,000
•Price per Half Gallon: $2.85; Estimated Demand: 85,000
•Price per Half Gallon: $2.90; Estimated Demand: 82,000
•Price per Half Gallon: $2.95; Estimated Demand: 79,000
•Price per Half Gallon: $3.00; Estimated Demand: 76,000
•Price per Half Gallon: $3.05; Estimated Demand: 73,000
•Price per Half Gallon: $3.10; Estimated Demand: 70,000
•Price per Half Gallon: $3.15; Estimated Demand: 67,000
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