We have experienced strong returns on our investments to date in sustainable coffee procurement. From our 100 percent ethical coffee commitment (C.A.F.E.), to our leadership in Fair Trade and organic coffees, to our one bag / one tree program. With help from our non-profit partners, we have been developing another offering of 100 percent sustainable, 100 percent traceable coffee that we are going to roll out in the market and would like your advice on how to price the new product for maximized profits.

We are excited by this new extreme green offering as it will be one of a kind in terms of its sustainability attributes vis--vis other offerings. Marketing is still working on the brand name and marketing materials, so for now we will refer to it as our extreme green coffee.

We would like you to restrict your profit analysis to a representative house in the third sales region in California (usually a hot spot for sales of coffee with purpose, so our best case for initial profits). Our sales team has run some surveys of the region and extracted the following representative household's monthly demand for the new extreme green coffee offering: Q =9.6 - 0.2P

The production is far from mature, so we are in need of some scenario analysis based on different production cost scenarios that could play out. We are confident that the extreme green coffee, once mature, will have procurement costs in the range between our fair trade coffee as a low estimate and our premium organic coffee as a high estimate. On a per household serviced bases, our current fair-trade procurement costs for the region are: C(Q) =70 + Q², while our premium organic procurement costs for the region are: C(Q) = 80 + 3Q² I am curious to see if there is any profit potential of this new product line.