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Bleakhouse Bakers produces breads and pastries. Bleakhouse is considering introducing a new breakfast item. They estimate materials costs at $4.00 per dozen and overhead costs
Bleakhouse Bakers produces breads and pastries. Bleakhouse is considering introducing a new breakfast item. They estimate materials costs at $4.00 per dozen and overhead costs of $2.10 per dozen. Bakers in the local market earn about $30.00 per hour. Bleakhouse sets a goal of earning an operating profit equal to 25 percent of production costs.
What price should Bleakhouse charge per dozen to achieve its profit goals if production requires 0.7 labor hours per dozen? Round your answer to the nearest $0.01.
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