Randy Duckout has been asked to develop an esti-mate of

Chapter , Problem 2-49

(choose chapter or problem)

Randy Duckout has been asked to develop an esti-mate of theper-unit selling price(the price that eachunit will be sold for) of a new line of handcraftedbooklets that offer excuses for missed appoint- ments. His assistant Doc Duckout has collectedinformation that Randy will need in developing hisestimate:Cost of direct labor $20 per hourCost of materials$43.75 per batchof 25 bookletsCost of overhead items 50% of direct laborcostDesired profit20% of totalmanufacturing costDoc also finds out that (1) they should use a 75%learning curve for estimating the cost of direct labor,(2) the time to complete the 1stbooklet is estimatedat 0.60 hour, and (3) the estimated time to completethe 25thbooklet should be used as their standard timefor the purpose of determining theunit selling price.What would Randy and Docs estimate be for theunitselling price?