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Pricing Project: Weighted Average Price

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


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 ...

Solution Summary

The solution examines pricing projects and the weighted average price.