Domingo Corporation makes a variety of headphones with logos. The company has discovered a new market...
Domingo Corporation makes a variety of headphones with logos.
The company has discovered a new market for wireless headphones
with logos. Market research indicates that these headphones would
sell well in the market priced at $50.00 each. Domingo desires an
operating profit of 25 percent of costs.
Required:
What is the highest acceptable manufacturing cost for which Domingo would be willing to produce the headphones? (Round your answer to 2 decimal places.)
: Highest acceptable manufacturing costs? = ???
Homework Answers
Domingo Corporation is planning to introduce wireless headphone with price of $50.
They currently plan to get a total of 25% profit on price of $50
Let the cost be C.
Then the price = C*(1 + 25%)
So, 50 = C*1.25 => C = $40.00
Highest acceptable manufacturing costs = $40.00
Add Answer to:
Domingo Corporation makes a variety of headphones with logos.
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