Price

Naked Juice has an elastic demand because the change in price of their products will cause a change in demand. Costs that correlate with naked juice products include direct materials; plastic renewable bottles, raw juice, vitamins, protein powders, packaging materials. Naked juice would also occur direct labor such as assembly line laborers. Manufacture overhead costs would be occurred including; indirect labor such as workers not directly associated with production, indirect material cost including materials that are not raw materials such as grease for the machines and other indirect manufacture costs such as depreciation and utilities. Prices for Naked Juice products are going to be somewhat fixed because of the various competitors and the variety of others choices offered to consumers (Manufacturing cost, 2013). The average selling price per 15oz bottle to retailers will be $3.29 which is about a 30% markup to reach the objective of the ROI for the shareholders.