You have been given the assignment to read Beer School: Bottling Success at The Brooklyn Brewery. Upon completion of reading this informative book dealing with this real life rags to riches entrepreneurial….
Calculate the minimum price per unit the company should accept.
1. Alexander Corporation wants to market a product that will cost $510,000 over its life. Demand for the product is expected to total 5,000 units. Alexander believes that it can achieve a 30% profit margin on this product. Calculate the estimated selling price.
2. Jenkins Company recently discontinued sales of one of its products, but still has 2,000 units remaining in inventory. The units cost $40 each to make, and sold for $75. Jenkins could use the products for parts, which it estimates will generate $15 in savings per unit. Another firm has offered to purchase the remaining units in inventory. Calculate the minimum price per unit the company should accept.