Sid's skins makes a variety of covers for electronic organizers and portable music players. the company's designers have discovered a market for a new clear plastic covering with college logos for a popular music player. market research indicates that a cover like this would sell well in the market priced at $24.50. sid's desires an operating profit of 25 percent of costs. required: what is the highest acceptable manufacturing cost for which sid's would be willing to produce the cover? (round your answer to 2 decimal places.)

The highest acceptable manufacturing cost for which Sid's would be willing to produce the cover is $19.60

Explanation:

The computation of the highest acceptable manufacturing cost is shown below:

We know that the market priced at $24.50 and the operating profit is 25%  of the cost, we assume the cost is 100 and the selling price equals to

= Cost + operating profit

= 100 + 25% × cost price

= 125

The market price is given for selling price but we have to compute for the cost price

So, the calculation would be

= $24.50 × 100 ÷ 125

= $19.60

answer(b); ; ; the quantitative or qualitative variable for which the experimenter wishes to determine how its value is affected by the explanatory variable;