Question
Net sales for the year were $450,000 and cost of goods sold was $261,000 for the companys existing products. A new product is presently under
Net sales for the year were $450,000 and cost of goods sold was $261,000 for the companys existing products. A new product is presently under development and will have an expected selling price of not more than $56 per unit in order to remain competitive with similar products in the marketplace.
Calculate gross profit and the gross profit ratio for the year. |
What is the maximum cost per unit that can be incurred to manufacture the new product so that the product can be priced competitively and will not result in a reduction to the companys gross profit ratio?(Do not round intermediate calculations and round your final answer to 2 decimal places.) |
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