Question

In: Economics

Sudz Beer buys the necessary ingredients to brew and bottle one batch of beer for a...

Sudz Beer buys the necessary ingredients to brew and bottle one batch of beer for a total of $24,300. Each batch yields 75,960 bottles of beer. The cost per bottle is $0.32. They sell their beer to a distributor with a 35% markup, and then the distributor sells it to the retailer for a 41% markup. Because the retailer has a virtual monopoly on consumer sales, they get away with selling the beer at a 62% margin. What is the retail price of a case (24 bottles) of Sudz Beer?

Expert Solution

Answer: $38.47

Solution & Explanation:-

Here, in this question we have to find Retailer Selling Price for 24 bottles of Sudz Beer.

So, first we calculate :

Per unit sales price = 0.32 × (1+ 35/100)

(where $0.32 is cost per bottle & 35% markup is sell to distributor)

Per unit sales price = 0.32 × 1.35

Per unit sales price = 0.432

unit margin = 0.432-0.32 = 0.11

Now,

Distributor per unit selling price(COGS) is

=0.432 × (1+ 41/100)

= 0.60912

(where 0.432 is per unit sales price & 41% markup is distributor sells to retailer).

Retailer Selling Price = COGS / (1-Margin%)

= 0.60912 / (1- 62/100)

= 0.60912 × 0.38

= 1.6029

Retailer Selling Price for 24 bottles of Sudz Beer :

1.6029 × 24

= $38.47

Rahul Sunny answered 2 years ago

If you have 4-liter bottle beer A, and 6 another liter of bottle beer B, and...

If you have 4-liter bottle beer A, and 6 another liter of bottle beer B, and you need to measure exactly 2 liters of beer. The only actions you can do is to empty the bottle on the floor and to empty one bottle into the other. What are the initial state, state space, actions, goal test, path cost and the transition model (not to draw!!!)? The answer should be explained as a text only, without any drawing.

Describe the ingredients necessary for a PCR reaction (such as the one in lab 8), and...

Describe the ingredients necessary for a PCR reaction (such as the one in lab 8), and why they are necessary.

Describe the ingredients necessary for a PCR reaction, and why they are necessary.

Currency appreciation: Consider price of beer. Let's pretend that last year a bottle of beer used to cost one dollar, but this year it costs two dollars per bottle.

1) Currency appreciation: Consider price of beer. Let's pretend that last year a bottle of beer used to cost one dollar, but this year it costs two dollars per bottle. a) This means beer costs twice as much as last year; or beer price has gone up by ___________% b) One dollar buys half as much beer as last year; or dollar has fallen in value by ___________% Note: The same idea works for relative values of currencies, i.e. appreciation...

The price of a bottle of beer is $1 and the price of a pizza is...

The price of a bottle of beer is $1 and the price of a pizza is $10. The MRS of bottles of beer for pizza expressed by Karl is 5. Has Karl chosen the optimal amount of beer? How do you know? If Karl is not maximizing, what should he do to improve his situation? (Hint: what is the MRS at the consumer optimum point?)

Murphy’s Brewhouse was a rapidly expanding chain of home-brew bars. The beer was not very good,...

Murphy’s Brewhouse was a rapidly expanding chain of home-brew bars. The beer was not very good, but hopes were high when the company went public three years ago, because of founder/owner Kevin Murphy’s promotional skills. At the time the company went public, Murphy’s also issued $50 million of 20-year maturity debentures at a coupon rate of 9 percent. These debentures were sold at par ($1,000 per bond). Shortly after this debenture issue, Murphy’s received some very negative reviews, both in...

Pat and Kris are roommates. Pat takes 4 hours to brew a gallon of root beer...

Pat and Kris are roommates. Pat takes 4 hours to brew a gallon of root beer and 2 hours to make a pizza. Kris takes 6 hours to brew a gallon of root beer and 4 hours to make a pizza. These are their most preferred activities. (a) What is Pat’s opportunity cost to produce one pizza Note that an opportunity cost should be ex- pressed in goods, not resources, given up. (b) What is Kris’s opportunity cost to produce...

The world produces two goods: pizza & beer. In Brazil the price of a bottle of...

The world produces two goods: pizza & beer. In Brazil the price of a bottle of beer is $4 and the price of pizza is $15. In the rest of the world, a bottle of beer is $3.25 and a pizza is $12. What is one conclusion we can make? a.) The rest of the world has a comparative advantage in the in the production of pizza and beer b.) Brazil has an absolute advantage in the production of pizza...

The amount of beer in a bottle from the Dominion filling plant is normally distributed with...

The amount of beer in a bottle from the Dominion filling plant is normally distributed with at mean od 330 ml and a standard deviation of 4 ml. a. What is the probability that a single randomly selected bottle will have less than 325 ml? If the Quality Control manager at Dominion took many 12-packs of the beer (ie samples of 12): b. What would be the approximate shape of the distribution of the sample means? c. What would be...

An average of 12 ounces of beer is used to fill each bottle in a local...

An average of 12 ounces of beer is used to fill each bottle in a local brewery as recorded. The manager now believes that, in general, beer bottles are overfilled. He takes a random sample of 30 bottles to test. The sample mean weight of the bottles is 12.8 ounces with a standard deviation of 1.5 ounces. Conduct a one-sample t-test to test whether the beer bottles are overfilled. Use 5% level of significance. (Round your steps to 4 decimal...