Product Pricing: Two Products Assume Spindrift Beverage Co. manufactures two products, flavored water and carbonated water, both on the same assembly lines and packaged 30 cans per pack. The predicted sales are 150,000 packs of flavored water and 500,000 packs of carbonated water. The predicted costs for the year are as follows.

	Variable Costs	Fixed Costs
Materials	$4,000,000	$1,560,000
Other	2,000,000	2,052,500

Flavored water uses 25% of the materials costs and 10% of the other costs. Carbonated water uses 75% of the materials costs and 90% of the other costs. The management of Spindrift desires an annual profit of $450,000.

(a) What price should Spindrift charge for each pack if management believes the carbonated water sells for twice the price of flavored water? Round answers to the nearest cent.

Flavored Water $Answer Carbonated Water $Answer

(b) What is the total profit per product using the selling prices determined in part (a)? Use negative signs with answers,if appropriate.

Flavored Water $Answer Carbonated Water $