Question

Q2.

2.1 A beer marketer conducted a consumer survey to understand the consumption pattern of beer in the market. Analyze the following information to determine the average amount of beer consumed in gallons, per person, per year.

Weekly consumption in 12 oz cans	% Respondents
0-2	30.0
3-5	40.0
6-9	20.0
10 and over	10.0
Total	100.0

2.2 If the wholesale price of can beer is $4.50 /6-pack and the variable cost of beer is 70% of the price what is the contribution per gallon of can beer?

2.3 The company also sells Keg beer at 60% of the price of can beer.

What is the effective average sales price of beer in $ per gallon if 75% of the beer is sold in cans and the rest in kegs?

Answer 1

	72 OZ	1 Gallon or 128 OZ
S.P	$                                                4.50	$                               8.00
V.cost	$                                                3.15	$                               5.60
Contribution margin	$                                                1.35	$                               2.40
	72 OZ	KEG
S.P	$                                                4.50	$                               2.70
V.cost	$                                                3.15	$                               1.89
Contribution margin	$                                                1.35	$                               0.81
	S.P	Weight
Cans	$                                                4.50	75%	$                                                   3.38
KEG	$                                                2.70	25%	$                                                   0.68
		Effective S.P	$                                                   4.05

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