Tide laundry detergent is a well known brand that sells for approximately $8.00 for a 64 ounce bottle,and Procter & Gamble usually sells 2 million of these sizes each year.An average private label store brand costs $6.00 for the same size,and typically 1 million are sold each year.What is Tide's revenue premium?

Question

Quizplus · Accepted Answer

Tide's revenue premium is calculated by comparing its revenue to that of the average private label store brand. Tide sells 2 million bottles at $8 each, totaling $16 million. The private label sells 1 million bottles at $6 each, totaling $6 million. The difference in revenue, or the premium, is $10 million.

Tide Laundry Detergent Is a Well Known Brand That Sells