A leading beverage company sells its signature soft drink brand in vending machines for $0.89 per 12
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Question:
A leading beverage company sells its signature soft drink brand in vending machines for $0.89 per 12 oz. can. A vending machine has monthly costs of space rental, energy consumption, and capital depreciation of $155. A shortage in the world sugar market causes sugar prices to soar. As a result, the Variable Cost of a can of soda increases from $.32 to $0.47.
What would the new selling price of the soda need to be in order to achieve a 20% increase in the contribution per unit after the increase in the price of sugar?
Related Book For
Advanced Financial Accounting
ISBN: 978-0137030385
6th edition
Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay
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