Finding the Acceptable Manufacturing Cost

Direct material = $25
Direct labor = $30
Manufacturing overhead = $45
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Total Cost = $100

Muck Duck Company wants to sell All-Body swimsuit. Market study showed that it could sell for $110/each.

What is the highest acceptable manufacturing cost Muck Duck would be willing to incur to produce the swimsuit, if it desired a profit of $25 per unit?

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Total Cost = $100

Muck Duck Company wants to sell All-Body swimsuit. Market study showed ...