Finance

According to the conducted survey, the retail price of the bottle should not exceed €15. While taking this into consideration, material costs, production costs, and transportation costs have to be calculated.

When calculating the costs per bottle, an initial sales volume of 100.000 bottles is used. 100.000 is a relatively safe number, as Emsa has a big customer base already. In the end, considering all these costs, the cost price of The Twist should be around €6,06. When subtracting this cost price from the selling price of approximately €10, the profit on The Twist is €3,94. This means the profit margin on a twist is 39,4%. Due to economies of scale, this profit margin will even be higher if more Twists are sold.