Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. greenfield farms is reevaluating the pricing of i

Greenfield Farms is reevaluating the pricing of its fresh-squeezed apple juice in half-gallon containers. Variable costs...

70.2K

Verified Solution

Question

Accounting

Greenfield Farms is reevaluating the pricing of its fresh-squeezed apple juice in half-gallon containers. Variable costs per half-gallon container of fresh-squeezed apple juice are $1.75. Based on Greenfield's market study, management has determined that the price per half-gallon should be between $2.75 and $3.25. Management knows from past experience that demand is affected by price and estimates the demands shown in the following table for prices between $2.75 and $3.25. Considering only prices in increments of 5 cents, which price should Greenfield choose to maximize its contribution margin from sales of half-gallon fresh-squeezed apple juice? Prepare a contribution margin statement for this price.

Price per Half Gallon

Estimated Demand (Half-Gallon Units)

$2.75

80,000

$2.80

78,000

$2.85

75,000

$2.90

72,500

$2.95

70,000

$3.00

67,500

$3.05

65,000

$3.10

62,500

$3.15

60,000

$3.20

57,500

$3.25

55,000

Answer & Explanation Solved by verified expert
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!
Become a Member

Other questions asked by students

Q

X P x 0 0 1 1 0 05 2 0 15 3 0 7...

Statistics
Q

***** A Ferris wheel is 25 meters in diameter and boarded from a platform that is 1...

Basic Math
Q

Molecular Structure and Physical Properties Consider the following statements and determine which are true and which are...

Chemistry
Q

show Excel ( show all work including formulars ) You are considering an investment in the stock...

Finance
Q

steps to drill, boring and reaming for 30 mm diameter of workpiece

Mechanical Engineering
Q

The cost for ground shipping with FedEx and UPS varies. UPS charges $8.25 initially, and...

Basic Math
Q

Find the exponential function that is the best fit for f x defined by the...

Algebra
Q

Calculate the vertex of the parabola using the equation 10 y x 4x 7 11...

Algebra
Q

1 2 4 Moving to another question will save this response. Question 3 of 4...

Accounting
Q

When three or more accounts are involved in one journal entry, the entry is referred...

Accounting
Q

Attest services do not include ________. a. audits b. compilation reports of financial statements c....

Accounting
Q

Which of the following statement is correct? APT assumes the market is frictionless If CAPM...

Finance