Product Pricing: Single Product

Assume that you plan to open a soft ice cream franchise in a resort community during the summer months. Fixed operating costs for the three$-$month period are projected to be $$8,360.$ Variable costs per serving include the cost of the ice cream and cone, $$0\mathrm{.}73,$ and a franchise fee payable to Austrian Ice, AG$,$ $$0\mathrm{.}21.$ A market analysis prepared by Austrian Ice indicates that summer sales in the resort community should total $24,000$ units.

Determine the price you should charge for each ice cream cone to achieve a $$25,000$ pretax profit for the three$-$month period.

Round answer to two decimal places.

$Answer $1$

$0$

price per cone