Short Bakers makes baked goods for catered events and for sale at local grocery stores. The...

 

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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 $4.85 for the pastry, and overhead costs would average $1.15 per dozen. The local wage rate for direct labor is $30.00 per hour. Short has a goal of earning an operating profit of 20.00 percent of production costs for each of its products. Required: What direct labor-hour input (hours 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 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 $4.85 for the pastry, and overhead costs would average $1.15 per dozen. The local wage rate for direct labor is $30.00 per hour. Short has a goal of earning an operating profit of 20.00 percent of production costs for each of its products. Required: What direct labor-hour input (hours 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

Answer rating: 100% (QA)

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