Net sales for the year were $500,000 and cost of goods sold was $295,000 for the companys existing products. A new product is presently under development and will have an expected selling price of not more than $57 per unit in order to remain competitive with similar products in the marketplace.

Required:

a.	Calculate gross profit and the gross profit ratio for the year.
	__________________________ ________________________ ______________________% __________________________ ________________________ ______________________% __________________________ ________________________ ______________________%

b.	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.)
	Maximum manufacturing cost __________ per unit.