What is the highest acceptable manufacturing cost for hwich Domingo would be willing to produce the headphones?

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 41P: Salem Electronics currently produces two products: a programmable calculator and a tape recorder. A...
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What is the highest acceptable manufacturing cost for hwich Domingo would be willing to produce the headphones?

Exercise 4-43 (Static) Target Costing and Pricing (LO 4-3)
Domingo Corporation makes a variety of headphones with logos. The company has discovered a new market for wireless headphones
with logos. Market research indicates that these headphones would sell well in the market priced at $149 each. Domingo desires an
operating profit of 25 percent of costs.
Required:
What is the highest acceptable manufacturing cost for which Domingo would be willing to produce the headphones? (Round your
answer to 2 decimal places.)
Highest acceptable manufacturing costs
Transcribed Image Text:Exercise 4-43 (Static) Target Costing and Pricing (LO 4-3) Domingo Corporation makes a variety of headphones with logos. The company has discovered a new market for wireless headphones with logos. Market research indicates that these headphones would sell well in the market priced at $149 each. Domingo desires an operating profit of 25 percent of costs. Required: What is the highest acceptable manufacturing cost for which Domingo would be willing to produce the headphones? (Round your answer to 2 decimal places.) Highest acceptable manufacturing costs
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