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Answer:
It should charge $48 for a five-pound package of salmon.
Step-by-step explanation:
Assume the variable cost per package is $30, and the fixed cost is $250,000.
We know the formula: Profit = Total revenue - Total cost.
Profit = 38000
Total revenue = P x Q (P= price, Q = quantity)
Total revenue = 16000P
Total cost = [Fixed cost + (variable cost x quantity)]
Variable cost = 30
Fixed cost = 250000
Putting all values in formula: (P x Q) - [FC + (VC x Q)]
Solving for P;
=>
=>
Cancelling zeroes and dividing by 16 on both sides, we get;
P = $48
Hence, the company should charge $48 for a five pound package of salmon.