Need answer for below question.

While the financial impact of this decision is important to the company, there are other considerations the members of the senior management team have raised. The biggest point of disagreement among the team is whether the company should focus on a premium position offered by the Gold blend or a value position offered by the Rose blend.

Based on all the available information, select the best option (premium vs. value) and outline why you would select that option. You should also provide guidance as to the steps the company should to launch the new product.

You are the new marketing director for a manufacturer of shelf stablejuices that are sold under the Mackinac Island Grower (MIG) label. Your juices are sold to retail grocery chains in the Midwest. The general manager has asked mu to compare the protability of two potential products Ml. Gold (Gold) and Michigan Rose (Rose) blend. The company has tun alternatives for converting pure grape juice into bottled juice. it can be bottled as a premium juice and sell an estimated 15,000 cases under the Gold label. Or. the juice can be diluted (under the Rose label) and sell approximately 31,000 cases. The suggested retail price of the Gold label would be $58.50. while the Rose label would retail for $36.85. Retailers earn a 35% markup on the retail selling price. while distributors earn a margin of 10%. The company estimates that fixed costs will be $120,000 for the Gold label and $85000 for the Rose label. The following table summarizes the variable cost per case for each alternative. Gold Blend Juice $8.040 ContainerfPackaging 2.929 Lids and Caps .277 Labels .130 Direct Labor .200 Overhead .960 Trade Promotion 2.00 Based on the above answer the following: Rose Blend $6.226 2.500 .185 .075 .200 .960 .750 1. Retailers markup (in dollars) per case for Gold Blend. In other words, how much will a retailer earn selling a case of Gold Blend? 2. Retailers markup (in dollars) per case for Rose Blend. In other words, how much will a retailer earn selling a case of Rose Blend? 3. Mackinac Island Contribution (dollars/case) for Gold Blend. 4. Mackinac Island Contribution (dollars/case) for Rose Blend. 5. Mackinac Island Contribution (96) for Gold Blend. 6. Mackinac Island Contribution (96) for Rose Blend. 7. Number of units needed to breakeven for Gold Blend. 8. Number of units needed to break-even for Rose Blend. 9. Profit if sales estimate for Gold Blend is met. 10. Profit if sales objective for Rose Blend is met. 1. Calculation of Retailers markup (in dollars) per case for Gold Blend Particulars Gold Blend Retail Price 58.50 35%% Markup on Selling Price 20.48 2. Calculation of Retailers markup [in dollars) per case for Rose Blend Particulars Rose Blend Retail Price 36.85 35%% Markup on Selling Price 12.90 3. Calculation of Contribution & Contribution % of Gold Blend & Rose Blend for Mackinac Island Sr. Particulars Gold Blend Rose Blend 1 Retail Price 58.50 36.85 2 Retailer Markup 20.48 12.90 3 Cost to Retailer/Selling Price of Distributor (1-2) 38.03 23.95 4 Margin of Distributor (10%%) 3.80 2.40 5 Cost to Distributor/Selling Price of Mackinac Island (#-4) 14.22 21.56Variable Costs: Juice 8.04 6.23 7 Container/Packaging 2.93 2.50 8 Lids and Caps 0.28 0.19 9 Labels 0.13 0.08 10 Direct Labor 0.20 0.20 11 Overhead 0.96 0.96 12 Trade Promotion 2.00 0.73 13 Total Variable Cost 14.54 10.90 14 Contribution per Unit(5 - 13) 19.69 10.66 15 Contribution %% for Mackinac Island (14/ 5 #100) 57.53% 19.467 Mackinac Island Contribution ( dollars/case) for Gold Blend. 19.69 Mackinac Island Contribution (dollars/case] for Rose Blend. 10.66 Mackinac Island Contribution (%) for Gold Blend 57.53%% Mackinac Island Contribution (X) for Rose Blend. 49.46% 4. Calculation of No. of Units to Reach Break-Even Break Even Sales - Fixed Cost Contribution per Unit Particulars Gold Blend Rose Blend 1 Fixed Cost 120,000.00 85,000.00 2 Contribution per Unit 19.69 10.66 3 Break-Even Sales in Units(1/ 2) (Rounded off) 6,096.00 7,973.005. Calculation of Profit for Mackinac Island, if Sales Estimate Met: Particulars Gold Blend Rose Blend 1 Estimated No. of Units to be sold 15.000.00 31.000.00 2 Contribution per Unit 19.69 10.66 3 Total Contribution ( 1x 2) 295,297.50 330,498.73 A Fixed Cost 120,000.00 85,000.00 5 Profit ( 3- 4) 175,297.50 245,498.75 Profit in case of Rose Blend is higher compare to Gold Blend. So, we will suggest to go for alternative of Rose Blend