Product Pricing: Single Product (LO2)

Sue Bee Honey is one of the largest processors of its product for the retail market. Assume that one of its plants has annual fixed costs total $8,000,000, of which $3,000,000 is for administrative and selling efforts. Sales are anticipated to be 800,000 cases a year. Variable costs for processing are $40 per case, and variable selling expenses are 25 percent of selling price. There are no variable administrative expenses.

Required If the company desires a profit of $5,000,000, what is the selling price per case? LO.1