Question

Yoplait has a new line of greek yogurt in a 9oz size. the marketing managers plan to test market the product in one small market for three weeks. They have calculated the cost and projected sales for each of the different flavors:

Plain cost is .55 each with a projected sales of 10,000 units,

Strawberry cost per unit is .60 with a projected sales of 13,000 units,

Blueberry costs are .68 per unit with projected sales of 9,000 units.

Each yogurt product will retail at the same price. using the average cost pricing and a 35% markup.

What will Yoplait price these products at the retail level?

Answer 1

$0.82

Step-by-step explanation:

Average Cost =Total Production Cost÷Number of Units Produced

`=(19420)/(32000) \\=\$0.61 per \:unit`

Since there will be a 35% markup

Retail Price=135% of 0.61

= 1.35X 0.61=$0.82