Question
Please solve in excel only!! As the product manager for Premier Cookie's flagship product, Beverly has the primary responsibility to set its wholesale price for
Please solve in excel only!!
As the product manager for Premier Cookie's flagship product, Beverly has the primary responsibility to set its wholesale price for next year. The current wholesale price is $1.47 per box of cookies. At this price, she anticipates selling 12,500,000 boxes of the product this year. Her current variable cost of production is $0.58 per box and her fixed costs are $1,250,000. Because of cost increases, she expects both her variable and fixed costs to rise by 5% next year. Based on her market research, she has determined that this type of cookie has price elasticity of 0.90.
She is considering four possible prices for next year: $1.40, $1.47, $1.50, and $1.55. At which price should she make the greatest profit from this product?
Please solve in excel only!!
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