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Golden Orchard Farms is considering pricing adjustments for its fresh-squeezed pear juice in half-gallon containers. Variable costs are $1.60 per container. The management is evaluating

Golden Orchard Farms is considering pricing adjustments for its fresh-squeezed pear juice in half-gallon containers. Variable costs are $1.60 per container. The management is evaluating prices between $2.60 and $3.10 to find the optimal price point that maximizes contribution margin. Prepare a detailed cost-benefit analysis.

Price per Half Gallon

Estimated Demand (Half-Gallon Units)

$2.60

95,000

$2.65

92,500

$2.70

90,000

$2.75

87,500

$2.80

85,000

$2.85

82,500

$2.90

80,000

$2.95

77,500

$3.00

75,000

$3.05

72,500

$3.10

70,000

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