Answer: | |
Highest acceptable manufacturing cost | Market Selling Price - Desired operating profit |
= 44.40 - 7.40 | |
= $ 37 per unit | |
Working Note: | |
1. Desired operating profit | = 44.40/120*20 |
= $ 7.4 |
Domingo Corporation makes a variety of headphones with logos. The company has discovered a new market...
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