Pep Soda, a Local Convenience Store, Sells Soft Drinks

question 147

Multiple Choice

Pep Soda, a local convenience store, sells soft drinks. It sells two large drinks for every small drink. A large drink sells for $1.50 with a variable cost of $0.60. A small drink sells for $1.00 with a variable cost of $0.50. The weighted average contribution margin is: (Round your intermediate calculations and final answer to two decimal places)

• A)$1.15 per drink.
• B)$2.30 per drink.
• C)$0.77 per drink.
• D)$0.60 per drink.

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Definitions:

Marketing Mix Variables

The controllable factors that a company uses to influence consumers' purchase decisions, traditionally known as the 4Ps: Product, Price, Place, and Promotion.

Target Customers

Refers to a specific group of consumers identified as the recipient of a marketing message or campaign due to their potential interest or need for a product or service.

SWOT Analysis

A strategic planning technique used to identify Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning.

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