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Page n > of5 O The manufacturer of a soft drink company wants to determine the optimal price for its 32 oz. soft drink. We
Page n > of5 O The manufacturer of a soft drink company wants to determine the optimal price for its 32 oz. soft drink. We know the following: o The marginal cost for this manufacturer is $1.23/bottle. o The manufacturer sells the product through a retailer. The retailer adds 10% markup over the wholesale price to determine the retail price. From their internal database. you get the data on the sales of the product and also the retail prices. Sales are measured in number of bottles. 0 The retail price is measured as $/bottle. You have conducted a regression analysis to identify the relationship between the sales and retail price of this brand: safes = a: + 1 * RetaIlPrtceOfBrand o The regression results are summarized below R-Square: 0.54, adjusted R-Square=0.535 Coefficients Intercept: 789.150, pvalue of 5 ZOOM + Now, things are getting more complicated. Let us also consider the competitor' s price. Sales = a + 81 . RetailPriceOfBrand + 82 . RetailPriceOfCompetitor . R-Square: 0.636; adjusted R-Square = 0.628 . Coefficients . Intercept: 701.139, p-value
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