1.    A linen manufacturer is looking to introduce a quality line of sheet sets to be sold to mass merchants such as the Real Canadian Superstore, Walmart, and so on. Market research indicates that consumers are willing to pay $59.98 for a Queen set (fitted sheet, flat sheet, and two pillow cases). The retailers expect their gross margin to be 50% of the selling price. The manufacturer expects to earn a 40% mark up on cost. What is the maximum amount the manufacturer can spend in production and distribution of the new sheets?

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