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Kearney, Inc., makes kitchen tools. Company management believes that a new model of coffee grinder would sell well at a price of $83.20. The
Kearney, Inc., makes kitchen tools. Company management believes that a new model of coffee grinder would sell well at a price of $83.20. The company estimates unit materials costs to be $10.00 for the model, and overhead costs would average $45.00 per unit. The local wage rate for direct labor is $20.00 per hour. Kearney has a goal of earning an operating profit of 30.00 percent of manufacturing costs for each of its products. Required: What direct labor-hour input (hours per unit) could Kearney allow and still achieve its profit goal? (Round your answer to 2 decimal places.) Maximum direct labor time per unit hours
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