Final answer:
To determine the price the company should charge to earn at least $8,448 in revenue, an understanding of revenues, variable costs, and pricing strategies, such as the profit-maximizing wage, is required. Additional information on unit sales and fixed costs is needed to calculate the exact price.
Step-by-step explanation:
The question requires calculating the price a company should charge for a product or service to achieve a specific revenue target, involving the application of basic revenue and cost concepts from business or economics. If a company aims to earn at least $8,448 in revenue, understanding the relationship between revenues, variable costs, and the price per product or service is vital. By examining scenarios given where a company earns revenues of $20,000, with variable costs of $15,000, and another scenario where revenues are $10,000 against variable costs of $15,000, we can infer the importance of setting prices that cover costs and generate the desired revenue.
In the case where a worker can produce two widgets per hour, and each widget is sold for $4, generating $8 in revenue per hour, the company should not pay the worker more than $8 per hour to maximize profits. This illustrates how the price at which goods are sold impacts the profit-maximizing wage. Now, applying this principle and assuming the contribution margin per unit exceeds the variable cost per unit, one could divide the target revenue of $8,448 by the number of units the business plans to sell to determine the minimum price to charge. However, to provide a definitive price, additional data such as the number of units expected to sell and the fixed costs (if applicable) are required.