Assuming no factory overhead, how will the $2.75 million promotion and sales budget be allocated?

Assuming no direct factory overhead costs (i.e., inventory carry costs) and $2.75 million dollars in combined promotion and sales budget, the Bold product manager wishes to achieve a product contribution margin of 30%. Given their product currently is priced at $35.00, what would they need to limit the material and labor costs to?

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•  $22.75

•  $24.50

•  $21.00

•  $23.00