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McCartney, inc., which uses a volume based cost system, produces dog houses, and has a profit margin of 46%. Direct materials cost $2 per unit,
McCartney, inc., which uses a volume based cost system, produces dog houses, and has a profit margin of 46%. Direct materials cost $2 per unit, and direct labor costs $8 per unit. manufacturing overhead is applied at a rate of 110% of direct labor cost. non manufacturing costs are $5 per unit.
How much does each dog house sell for?
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