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Sta. Elena Winery sells 100,000 gallons of wine a year. It sells 10% of its wine in barrels, 60% in jugs, and 30% in
Sta. Elena Winery sells 100,000 gallons of wine a year. It sells 10% of its wine in barrels, 60% in jugs, and 30% in 1-liter bottles. Its base selling price is $2 per gallon in barrels. The selling price of wine in jugs is 25% higher than in barrels; for wine bottles, it is 40% higher. a. b. Set up a spreadsheet model to determine total revenues for Sta. Elena. Start with total volume of wine in gallons and then set up cells (i.e. show the formula or equation) to determine volume for barrels, jugs and 1-liter bottles. c. Then set up cells to calculate revenue per type of packaging. d. Next, set up the cell for the total revenue e. Finally set up the cell that computes average selling price per gallon. f. Use your model and a calculator to answer the following questions: 1. How much revenue is provided for by the sale of wine in barrels? In jugs? In bottles? Total? 2. What is the average selling price in dollars per gallon?
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