(a) Estimate the variable cost per 1,000 sq. ft., on average, to manufacture and ship AirWrap using...

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(a) Estimate the variable cost per 1,000 sq. ft., on average, to manufacture and ship AirWrap using the AirSeal Equipment. (Assume the average bubble thickness is 3/16 inch.)

(b) Estimate the full cost per 1000 sq. ft., on average, to manufacture and ship AirWrap using the AirSeal Equipment.

(c) Comment on the estimated contribution margin and gross margin of AirWrap when produced on AirSeal machinery.

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
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