Well Water Inc. wants to produce and sell a new flavored 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 Desired profit $70,000 The target cost per bottle is

MARKETING 2018
19th Edition
ISBN:9780357033753
Author:Pride
Publisher:Pride
Chapter11: Product Concepts, Branding, And Packaging
Section11.1: Gaga: Not Just A Lady
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Well Water Inc. wants to produce and sell a new flavored 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

Desired profit $70,000

The target cost per bottle is

Group of answer choices
$0.40.
$0.44.
$0.60.
$0.16.
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