River Bend Orchards is evaluating the pricing of its fresh-squeezed cranberry juice in half-gallon containers. Variable...
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Accounting
River Bend Orchards is evaluating the pricing of its fresh-squeezed cranberry juice in half-gallon containers. Variable costs per container are $1.65. Based on market research, management has decided the price range to be between $2.65 and $3.15. Identify the price that maximizes contribution margin and prepare the cost of goods sold statement.
Price per Half Gallon
Estimated Demand (Half-Gallon Units)
$2.65
96,000
$2.70
93,000
$2.75
90,000
$2.80
87,000
$2.85
84,000
$2.90
81,000
$2.95
78,000
$3.00
75,000
$3.05
72,000
$3.10
69,000
$3.15
66,000
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