Target costing and pricing. Megadrive Industries makes high-pressure lines for a variety of heavy road-improvement equipment. Megadrive sells the lines to manufacturers who manufacture and sell the equipment. The company's market research department has discovered a market for high-pressure lines used in automated manufacturing equipment, which Megadrive presently does not produce. The market research department has indicated that lines would likely sell for $50 a foot.

Assume Megadrive desires an operating profit of 20 percent of sales. What is the highest acceptable manufacturing cost for which Megadrive would produce the lines'.'