A soda makers average cost per keg of craft soda is $60 and a keg sells to distributors for $90.

The distributor then resells the keg to a soda-pub for $120. Each keg serves more than 100 14.5-ounce glasses, the amount typically poured into a 16-ounce glass at a soda-pub to accommodate a foam head.

A soda makers cost per glass of craft soda poured is $0.88 per glass. The standard in the soda makers industry is to have 20 percent syrup cost, meaning 20 percent of the price to consumers represents the soda makers cost of goods sold, leaving 80 percent for the soda makers margin.

Calculate the price at which a soda-pub will sell one 14.5-ounce glass of craft soda if the desired 80 percent margin is based on selling price.

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