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Pricing Project: Weighted Average Price

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Attached is the spreadsheet we are supposed to complete.

However, I ran into a snag. My pretend company sells its beer in six-packs and kegs. Since there is a mixture, I am unsure how to calculate the break-even for the sales and the volume.

Please see ** ATTACHED ** file(s) for complete details!!

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Solution Summary

The solution examines pricing projects and the weighted average price.

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** ANSWERS: Please see attached file for answers.**

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PROBLEM

Estimation for Demand
Population in Philadelphia Proper 1,500,000 (Per Census Bureau)
50% are between 25 - 45 750,000 (Per Census Bureau)
25% are craft beer drinkers 187,500 (Assumption)
50% of the craft beer drinkers buy 1 six-pack 93,750 (Assumption)

Number of pubs in Philadelphia Proper Area 53 (Not affiliated with a brewery)
50% agree to carry Olde Towne craft beer 27 (Estimation)
Assume the turnover is one keg 2 times per month 648 kegs (Estimated)

Number of six-packs sold at the brewery 5,200 (Estimated, could be low)
Number of kegs sold at the brewery 200 (Estimated, could be ...

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