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Eco Water

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Submitted By Ercsa74
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Eco Water Inc. 1. How does the Purity II system compare with other alternatives? What are its advantages and limitations relative to customer needs?
The Purity II water filter works on the same way like other filter system on the market but it is more reliable because germs and bacteria are not build up and contaminates the water before it is used. Those less expensive purifying systems from the competitors are eliminating harmful minerals but not bacteria and germs. The difference between bottled water and Eco Water’s product is that the water in the bottles does not have the necessary vitamins and minerals, and therefore there are missing key nutrients that are eliminated through their evaporating system such as calcium and phosphate ions.
Advantages:
* it makes the water taste better than other filter systems and it has been proved through taste tests * the filtered water improves taste of beverages made with the filtered water * it makes food taste better Limitations: * the filter has to be replaced every 2 years * less expensive models in the market are available * installation involves drilling on the sink

2. How much contribution to profit comes from the sale of a Purity II unit and/or filter? * The Purity II system makes for Eco Water $195 contribution sold to customers and $75 contribution sold to retailer * $200/unit production cost * $395 - Sales Price for customers * $275 – Sales Price for retailer * (395$ - 200$ = 195$) – Directly to the consumer * (275$ - 200$ = 75$) – Retailer
The Purity II system makes 97.5% profit sold to a customer and only 37.5% profit when it is sold to a retailer. Thus it is more profitable for Eco Water to sell the product directly to the customer.

3. What do we know about the firm's current costs? About its profitability? How much does the firm need

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