Pricing You have developed a new line of high-end organic balsamic vinegars.
Pricing You have developed a new line of high-end organic balsamic vinegars. Several of your varieties are being used in restaurants in Chicago and have been well accepted by chefs and customers. You have decided to launch the product in both the retail and wholesale markets.
Determine your pricing objectives and develop your pricing strategy. Support your decisions.
Using the following information, apply your strategy and determine your pricing as well as break even in units. Support your decisions.
Bottle, Label and Production (direct material and labor)
$9.12 per 12 oz. bottle
Advertising & promotion
$218,000
Company Overhead
$354,000
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