Soft and Cuddly Friends (SCF) produces soft dolls. Demand for the dolls is increasing, and management wants you to identify an economical sales and production mix for the coming year. The following information is available: Softy Friendly Goody Besty Lovey Demand (units) 75,000 62,800 52,500 60,000 107,000 Price per unit $ 28.50 $ 13.50 $ 44.50 $ 22.50 $ 18.50 Variable costs: Direct materials 13.25 5.25 18.60 7.50 10.50 Direct labour 6.00 3.75 10.50 7.50 3.00 The following additional information is available: a. The companys plant has a capacity of 110,000 direct labour-hours per year on a single-shift basis. The companys present employees and equipment can produce all five products. b. The direct labour rate is $15 per hour; this rate is expected to remain unchanged during the coming year. c. Fixed manufacturing costs amount to $730,000 per year. Variable overhead costs are $6 per direct labour-hour. d. All of the companys sales and administrative costs are fixed.

What is the highest price, in terms of a rate per hour, that SCF would be willing to pay for additional capacity (i.e., for added direct labour time)?