Managers of SWEETY COMPANY, which manufactures a packaged beverage sweetener, have been trying to decide what price to charge for the product next year. One manager has come up with the following analysis: Likely Results

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Average Price per Case Total Case Volume Per$-$Case Cost Per$-$Case Gross Margin

$ $26060,000$ $ $225\mathrm{.}00$ $ $35\mathrm{.}00$

$ $25070,000$ $ $218\mathrm{.}00$ $ $32\mathrm{.}00$

$ $24080,000$ $ $212\mathrm{.}75$ $ $27\mathrm{.}25$

$"$It seems to me$,$ that we should go with the $ $260$ price, since the per$-$case gross margin is highest at that price", the manager says.

  

 

REQUIRED: Determine the price that yields the highest total profit to the firm. Show Computation

Answer rating: 100% (QA)

To determine the price that yields the highest total profit to the firm we need to c... View the full answer