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Bleakhouse Bakers produces breads and pastries. Bleakhouse is considering introducing a new breakfast item that would sell for a price of $30.00 per dozen. They
Bleakhouse Bakers produces breads and pastries. Bleakhouse is considering introducing a new breakfast item that would sell for a price of $30.00 per dozen. They estimate materials costs at $4.00 per dozen and overhead costs of $2.00 per dozen. Bakers in the local market earn about $16.78 per hour. Bleakhouse sets a goal of earning an operating profit equal to 25 percent of production costs.
How many direct labor hours per dozen could Bleakhouse allow and reach its profit goals for the product? Round your answer to the nearest 0.01 hrs.
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