Net sales for the year were $950,000 and cost of goods sold was $646,000 for the companys existing products. A new product is presently under development and will have an expected selling price of not more than $66 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.

a.

net sales			%
Cost of goods sold			%
Gross Profit			%

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 maufacturing cost

per unit