Domingo Corporation makes a variety of headphones with logos. The company has discovered a new market for wireless headphones with logos. Market research indicates that these headphones would sell well in the market priced at $30.00 each. Domingo desires an operating profit of 25 percent of costs.

Required:

What is the highest acceptable manufacturing cost for which Domingo would be willing to produce the headphones? (Round your answer to 2 decimal places.)

1. What is the highest acceptable manufacturing costs?