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Short Bakers makes baked goods for catered events and for sale at local grocery stores. The owner of Short Bakers believes that a new
Short Bakers makes baked goods for catered events and for sale at local grocery stores. The owner of Short Bakers believes that a new type of breakfast pastry would sell well for a price of $21.00 per dozen. Short estimates unit materials costs to be $4.85 for the pastry, and overhead costs would average $1.15 per dozen. The local wage rate for direct labor is $30.00 per hour. Short has a goal of earning an operating profit of 20.00 percent of production costs for each of its products. Required: What direct labor-hour input (hours per dozen) could Short Bakers allow for the new pastry and still achieve its profit goal? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Maximum direct labor time per unit hours
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