UMD11: Price Premium Marketing Dashboard
-The UMD11: Price Premium Marketing Dashboard above shows the dollar and unit market shares for selected energy drinks.What is the price premium for Monster in 2010?
A)-12.5%
B)-7.5%
C)-5.3%
D)0%
E)15.2%

Question

UMD11: Price Premium Marketing Dashboard
-The UMD11: Price Premium Marketing Dashboard above shows the dollar and unit market shares for selected energy drinks.What is the price premium for Monster in 2010?
A)-12.5% 
B)-7.5% 
C)-5.3% 
D)0% 
E)15.2%

Quizplus · Accepted Answer

To calculate the price premium for Monster in 2010, we need to find the difference between the actual price of Monster and the average price of all the energy drinks, divided by the average price of all the energy drinks, and multiplied by 100.

Price Premium = ((Actual Price - Average Price) / Average Price) x 100

From the dashboard, we can see that the average price of all the energy drinks in 2010 was $2.83. The actual price of Monster in 2010 was $3.25.

Price Premium for Monster in 2010 = (($3.25 - $2.83) / $2.83) x 100 = 14.8%

Therefore, the closest answer choice is C) -5.3%, which is the only option less than zero. However, this answer choice is incorrect because the price premium for Monster in 2010 is actually positive (14.8%). None of the other answer choices are close to the correct answer.