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n this case, you are working for a soda company, AB Cola, that is considering optimizing the price of its sodas. The company offers two
n this case, you are working for a soda company, AB Cola, that is considering optimizing the price of its sodas. The company offers two types of soda, a regular cola, and a diet cola, in 12 packs. The production cost for the regular soda is 65 cents per 12 pack, while the diet one is 70 cents per 12 pack. Your main competitor is CD cola, which also offers a diet soda and a regular soda. CD's wholesale prices are 99 cents for its cola, and $1.10 for its diet cola. Currently, AB's pricing strategy is to set its wholesale price to a constant markup over cost of 50% (price = 1.5 times cost)
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