High School

We appreciate your visit to PowerFruit Inc makes fruit based energy drinks that offer a natural alternative to Gatorade and Powerade They are a relatively new company but their drinks. This page offers clear insights and highlights the essential aspects of the topic. Our goal is to provide a helpful and engaging learning experience. Explore the content and find the answers you need!

PowerFruit, Inc. makes fruit-based energy drinks that offer a natural alternative to Gatorade and Powerade. They are a relatively new company, but their drinks, available in Raspberry, Orange, and Cherry, have been successful so far. PowerFruit's drinks are available in two different bottles: a 12oz single-serving bottle and a 32oz multiple-serving bottle, with current monthly sales of 2400 and 1400 units, respectively. The 12oz bottle sells for $1.50 and has a variable cost per bottle of $0.70, while the 32oz bottle sells for $3.50 and has a variable cost per bottle of $1.50.

Recently, customer feedback has suggested that some customers would prefer a 16oz bottle, and PowerFruit is debating whether or not to introduce the new size. The bottle would sell for $2.00 and have a variable cost per bottle of $1.00. Introducing a third bottle size will also increase PowerFruit's fixed costs by $200.00 per month.

Based on the unit sales of the other two flavors, PowerFruit expects the new 16oz bottle to sell 1800 units per month. They expect that 60% of these 1800 units will be customers who switch from the two existing sizes to the new 16oz size: 20% from the 32oz size and 40% from the 12oz size. The other 40% of sales of the 16oz bottle are predicted to come from new customers, as the advertising connected with the introduction of the new bottle is expected to increase awareness of the product.

1. What is the current gross profit for the 12oz and 32oz bottles? For the whole company?

Answer :

The current gross profit for the 12oz. and 32oz. bottles is $1920 and $2800, respectively. The current gross profit for the whole company is $4720.

To calculate the current gross profit for the 12oz. and 32oz. bottles, we need to subtract the variable cost per bottle from the selling price per bottle and multiply it by the number of units sold.

For the 12oz. bottle:
Selling price per bottle = $1.50
Variable cost per bottle = $0.70
Number of units sold = 2400

Gross profit for the 12oz. bottle = (Selling price per bottle - Variable cost per bottle) * Number of units sold
= ($1.50 - $0.70) * 2400
= $0.80 * 2400
= $1920

For the 32oz. bottle:
Selling price per bottle = $3.50
Variable cost per bottle = $1.50
Number of units sold = 1400

Gross profit for the 32oz. bottle = (Selling price per bottle - Variable cost per bottle) * Number of units sold
= ($3.50 - $1.50) * 1400
= $2.00 * 1400
= $2800

To calculate the current gross profit for the whole company, we add the gross profit of the 12oz. bottle to the gross profit of the 32oz. bottle:
Gross profit for the whole company = Gross profit for the 12oz. bottle + Gross profit for the 32oz. bottle
= $1920 + $2800
= $4720

Therefore, the current gross profit for the 12oz. and 32oz. bottles is $1920 and $2800, respectively. The current gross profit for the whole company is $4720.

Learn more about gross profit from the given link:

https://brainly.com/question/33973104

#SPJ11

Thanks for taking the time to read PowerFruit Inc makes fruit based energy drinks that offer a natural alternative to Gatorade and Powerade They are a relatively new company but their drinks. We hope the insights shared have been valuable and enhanced your understanding of the topic. Don�t hesitate to browse our website for more informative and engaging content!

Rewritten by : Barada