Assume Baldwin expands operations in Europe in the coming year. In doing so$,$ they have added capacity to fill all demand in$-$house and have increased automation to reduce labor cost by $10\%.$

For clarity, assume the following are true:

Baker material cost remains $$9\mathrm{.}92.$

Baker labor cost in $2023$ was $$9\mathrm{.}60.$

Baker will be priced at $30\mathrm{.}00$ per unit, in Euros $($current conversion rate is $$1=0\mathrm{.}90).$

Inventory carry costs average $10\%$ of labor plus materials costs.

Shipping costs from the Americas to Europe are $$3\mathrm{.}00$ per unit.

What will Baker$$s contribution margin be in Europe for the coming year?

Question $2$ options:

$1)$

$23\mathrm{.}8\%$

$2)$

$26\mathrm{.}6\%$

$3)$

$38\mathrm{.}8\%$

$4)$

$29\mathrm{.}8\%$