1. Unit brewer contribution to keurig inc is $____

2. Unit K Cup contribution to Keurig inc is $______

3. Unit contribution of a starter system to keurig is $________

4. Number of systems required to break even is ________

Keurig Inc. plans to introduce a new single-cup coffee brewing system to small offices throughout the United States. Unlike traditional coffee systems, the Keurig system is proprietary: only Keurig coffee, packaged as K-Cups, will work with a Keurig brewer. The manufacturing cost of a brewer is $90 and that of a K-Cup is 10 cents. The investment on production equipment for the cups costs about $400,000 and that for the packaging line is $60,000. The company plans to sell a starter system that consists of a brewer and 200 K-cups to offices via wholesalers who take a 25% markup on price for the brewer and 50% markup on K-cups. The wholesalers will autoship K-cups to replenish supplies. The list price to offices is $200 a brewer and 50 cents per cup. (Hint: Set up 2 tables for channel pricing and add the numbers for a system.) Please save your work in a new worksheet named Coffee in Your Name Excel workbook