Assume that Green Ox will have a manufacturer cost of $0.20 per 20oz bottle and that the retail margin will be 35%. For each price in the first Column of Table 2 (sports drinks), compute the $ margin for Green Ox (show all work). Using this information, determine the profit maximizing retail price for Green Ox.

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Table 2. Predicted Green Ox trial rates among sports-drink consumers, antioxidant pill consumers, and V7 consumers. Price for 20-Ounce Bottle* $1.19 $0.99 $0.79 $0.59 $0.39 Sports-Drink Consumers 8% 15% 20% 22% 25% Antioxidant Pill Consumers 1% 2% 20% 25% 30% V7 Consumers 1% 2% 2% 5% 6% * Green Ox would be offered in packs of four 20-ounce bottles and in single bottles. Most sales were expected to be four-packs. Source: Created by author. Although some individuals would undoubtedly not repurchase Green Ox after trying it, MSI anticipated demand for the product over the first year would be reasonably approximated by the figures given in Table 2. New buyers would replace those who discontinued purchasing Green Ox. The average purchase would be two four-packs with the average consumer making a purchase once every four weeks.4 Table 2. Predicted Green Ox trial rates among sports-drink consumers, antioxidant pill consumers, and V7 consumers. Price for 20-Ounce Bottle* $1.19 $0.99 $0.79 $0.59 $0.39 Sports-Drink Consumers 8% 15% 20% 22% 25% Antioxidant Pill Consumers 1% 2% 20% 25% 30% V7 Consumers 1% 2% 2% 5% 6% * Green Ox would be offered in packs of four 20-ounce bottles and in single bottles. Most sales were expected to be four-packs. Source: Created by author. Although some individuals would undoubtedly not repurchase Green Ox after trying it, MSI anticipated demand for the product over the first year would be reasonably approximated by the figures given in Table 2. New buyers would replace those who discontinued purchasing Green Ox. The average purchase would be two four-packs with the average consumer making a purchase once every four weeks.4

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To compute the margin for Green Ox we need to consider the manufacturer cost retail margin and the g... View the full answer