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Strued

Help

Sover $8$ Exit

Exercise $4-37($Algo$)$ Target Costing $($LO $4-3)$

Short Bakers makes baked goods for catered events and for sale at local grocery stores. The owner of Short Bakers believes that a new type of breakfast pastry would sell well for a price of $$21,00$ per dozen. Short estimates unit materials costs to be $$4\mathrm{.}65$ for the pastry, and overhead costs would average $$0\mathrm{.}95$ per dozen. The local wage rate for direct labor is $$2600$ per hour. Short has a goar of earning an operating profit of $2000$ percent of production costs for each of ils products.

Required:

What direct labor$-$hour input $($fours per dozen$)$ could Short Bakers allow for the new pastry and still achieve its profit goal? $($Do not round intermediate calculations. Round your answer to $2$ decimal places.$)$

Maximum direct labor time per unit

hours

Prex

$2$ of $4$

Next $>$