An executive from a large merchandising firm has called your vice president for production to get a price quote for an additional 100 units of a given product. The vice president has asked you to prepare a cost estimate. The number of hours required to produce a unit is 8. The average labor rate is $17 per hour. The materials cost $14 per unit. Overhead for an additional 100 units is estimated at 30% of the direct labor cost. If the company wants to have a 40% profit margin, what should be the price to quote for 100 units?
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