Question
9. Yoplait has new line of Greek yogurt in a 9 oz size. The Marketing Managers plan to test market the product in one small
9. Yoplait has new line of Greek yogurt in a 9 oz size. The Marketing Managers plan to test market the product in one small market for three weeks. They calculated the cost and projected sales for each of the different flavors: Plain cost is .55 each with the projected sales of 15,000 units, Strawberry cost per unit is .70 with the projected sales of 18,000 units, and Blueberry cost are .78 per unit with the projected sales of 12,000 units. Each yogurt product will retail at the same price. Using the average cost and a 40% markup, what will Yoplait price the 9 oz. Greek Yogurt at the retail level? Explain your answer and show calculation steps.
The answer is $1.12 I have absolutely no idea how to get there though
Here is the work I did. Where did I go wrong on these calculations?
Plain: 0.55 Per Unit, 15,000 Units= Total cost=8,250
Strawberry: 0.70 Per Unit, 18,000 Units= Total cost= 12,600
Blueberry: 0.78 Per Unit, 12,000 Units= Total cost= 9,360
Total: Units= 45,000 Units
Total Cost= 30,210
Average Cost Is ( Total Cost Of Production Of Yogurt Of All Types / Quantity Produced Or Sold) we therefore need to find the Total Cost Of Production of yogurt and the Total Quantity Produced.
Average Cost Per Unit = Total Cost/ Total units
= 30,210/45,000
= 0.67133
Markup= 40% x 0.67133= 0.26853
Retail Price = Average cost + Markup
= 0.67133 +0.26853= 0.93986 Retail Price
Yoplaits price of Greek Yogurt at the retail level will be = 0.93986 OR $0.94(Approximately)
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