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 $$16,317,500,$ of which $$5,250,500$ is for administrative and

selling efforts. Sales are anticipated to be $950,000$ cases a year. Variable costs for processing are $$35$

per case, and variable selling expenses are $10\%$ of selling price. There are no variable administrative

expenses.

Required

If the company desires a pretax profit of $$9,000,000,$ what is the selling price per case?