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A new, vitamin-rich drink called ZAP is an entry in the 21 million 8 oz. can sports drink national market. Because of the lack of marketing funds, management has decided to introduce ZAP only in major cities that account for 65% of the U.S. sports drink market. Advertising costs are estimated at $250,000 and fixed overhead costs are $90,000 per year. The retail price to the consumer for an 8 oz. can will be $.50. Variable costs for the product are $.18/can for material and $.06/can for labor. Retailers will get a margin of 20% off of retail prices and wholeslaers will get 10% off the retailer cost of the item. At what price will the product be sold to wholesalers (manufacturer's selling price)? 

Reference no: EM131002596

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