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Cost-Based Pricing in Single Product Company Question. My attempt at this question considered solving for price. 6,000,000 = (x * 800,000) - (9,600,000 + [24
Cost-Based Pricing in Single Product Company Question.
My attempt at this question considered solving for price.
6,000,000 = (x * 800,000) - (9,600,000 + [24 * 800,000]
Price * 800,000 = 28,800,00 + 6,000,000
Price = 34,800,000 / 800,000
$43.5
Thank you for any help.
QUESTION 2 Incorrect Mark 0.00 out of 3.00 P Flag question Product Pricing: Single Product 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 totaling $9,600,000, of which $3,600,000 is for administrative and selling efforts. Sales are anticipated to be 800,000 cases a year. Variable costs for processing are $24 per case, and variable selling expenses are 25 percent of selling price. There are no variable administrative expenses If the company desires a profit of $6,000,000, what is the selling price per case? Round answer to two decimal places. 43.5x price per caseStep by Step Solution
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