Gizmos and Gadgets, Inc. produces and sells a mechanical model car kit that challenges young children to create a motorized model car. The cost associated with the parts for the car kit include variable costs of $18 and fixed costs of $7. If the company expects to recognize a profit based on a markup of 40%, what is the expected selling price for each car kit?

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The Answer of Gizmos and Gadgets, Inc. produces and sells a mechanical model car kit that challenges young children to create a motorized model car. The cost associated with the parts for the car kit include variable costs of $18 and fixed costs of $7. If the company expects to recognize a profit based on a markup of 40%, what is the expected selling price for each car kit?