Mountain Spring Inc. wants to produce and sell a new brand of bottled water. In order to penetrate the market, the product will have to sell at $2.00 per 12 oz. bottle. The following data has been collected:
Annual sales | 50,000 bottles |
Projected selling and administrative costs | $8,000 |
The target cost per bottle is
◦ $0.40.
◦ $0.16.
◦ $0.60.
◦ $0.44.