Fannie is brand manager for Tide liquid detergent. Her R&D team has developed a new product which can clean just as well as the regular product, but using just half the amount of detergent. Further, the cost of manufacturing the new product is identical to the existing Tide product ($1 per 1-gallon), which is priced at $10 per 1-gallon container, which typically services 90 laundry loads.

Come up with a suitable price range for the new product, assuming it will also be sold in a 1-gallon container, and justify your decision.

Answer rating: 100% (QA)

The suitable price range for the new product should take into account its value proposition of requi... View the full answer