Autumn Orchards is reevaluating the pricing of its fresh-squeezed pear juice in half-gallon containers. Variable costs per container are $1.65. Identify the optimal price to maximize contribution margin and prepare a detailed income statement.
•Price per Half Gallon: $2.65; Estimated Demand: 96,000
•Price per Half Gallon: $2.70; Estimated Demand: 93,000
•Price per Half Gallon: $2.75; Estimated Demand: 90,000
•Price per Half Gallon: $2.80; Estimated Demand: 87,000
•Price per Half Gallon: $2.85; Estimated Demand: 84,000
•Price per Half Gallon: $2.90; Estimated Demand: 81,000
•Price per Half Gallon: $2.95; Estimated Demand: 78,000
•Price per Half Gallon: $3.00; Estimated Demand: 75,000
•Price per Half Gallon: $3.05; Estimated Demand: 72,000
•Price per Half Gallon: $3.10; Estimated Demand: 69,000
•Price per Half Gallon: $3.15; Estimated Demand: 66,000