The predicted selling price for a product has been set at $\$ 56$ per unit. The desired mark-up on cost is $25 \%$ and the material cost for the product is estimated to be $\$ 16$ before allowing for additional materials to allow for shrinkage of $20 \%$ (for every $10 \mathrm{~kg}$ of material going in, only $8 \mathrm{~kg}$ comes out).

Labour is the only other cost, and 2 labour hours are needed.

What is the most the business can pay per hour if a cost gap is to be avoided?

$\$$ _____________