PRICING CALCULATION QUESTIONS Instructions: a. Answer one of the following questions. Clearly identify the selected question by circling it. Write neatly, clearly and legibly not to lose points. b. Show all work, including the equation that you use, to avoid losing points C. 1. Chemists at One Citrus Industries have developed a new breakfast drink. The drink, called CPlus, will provide the consumer with nearly twice the vitamin C as other breakfast drinks. CPlus will be packaged in eight-ounce cans and will be introduced using a mass advertising campaign. Management has decided to spend $300,000 on advertising. Other fixed costs are projected to be $100.000 per year. The unit variable costs to produce an eight-ounce can of drink include $.18 (18 cents) for materials and $.06 (6 cents) for direct labor. The selling price to wholesaler is set at $.36 (36 cents) per can. Variable cose fixed cost What is the contribution per unit for CPlus? Pace b. What is the break-even unit volume in the first year? What is the net profit if 6 million units are sold? d. How many units need to be sold to achieve a profit of $600,000? a. C. Contriout margin ROfit- revenue-coE ,3l6-.24 = 12 4o0,000 .12