Hello,

I need help with the following question. Please show a detailed explanation. Thank you!

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 $12,000,000, of which $4,500,000 is for administrative and selling efforts. Sales are anticipated to be 800,000 cases a year. Variable costs for processing are $30 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 $7,500,000, what is the selling price per case?