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