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Sunny Valley Orchards is reevaluating the pricing of its fresh-squeezed orange juice in half-gallon containers. Variable costs per half-gallon container of fresh-squeezed orange juice are $1.50. Based on Sunny Valley's market study, the management has determined that the price per half gallon should be between $2.50 and $3.
Considering only prices in increments of 5 cents, which price should Sunny Valley choose to maximize its contribution margin from sales of half-gallon fresh-squeezed orange juice?
Price per Half Gallon Estimated Demand(Half-Gallon Units)$2.50 75,0002.55 72,5002.60 70,0002.65 67,5002.70 65,0002.75 62,5002.80 60,5002.85 57,5002.90 55,0002.95 52,5003.00 50,000
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