at the end of October, Debra laminated the company's situation: in the middle of production of Bridgeport-T's most popular long-sleeve T-shirt, the company ran out of its usual collars, purchased from one main supplier. That supplier was also sold out. Bridgeport-T could get a slightly different premade-collar, from a new supplier, at the same cost. So Debra went ahead with the order, hoping it wouldn't delay production or affect the quality of the shirt. As it turned out, the new collars failed Bridgeport-T's quality control testing. Stuck with unwearable T-shirts, the company was also in a bind with its retail outlets, which wanted more shirts to sell! the costs to produce this most recent batch of shirts is as follows.

-direct material $75,000

- direct labor 29,000

- manufactoring overhead 15,000

- total costs $119,000

Volume in batch 20,000

B) Scrambling, Debra has gone back to her original supplier of collars, which thankfully now has a large quantity it can ship to her. these collars cost $0.60 each, and the company can get enough of them to go back and fix the collars on the recently ruined batch, plus put some into the warehouse for a future batch. in order to fix the botched T-shirts, though, Bridgeport-T will need to incur an extra $2 per shirt in labour costs to carefully remove the bad collars and re-attach the new ones. these reworked shirts should still be salable to retailers at the regular selling price.

How much gross margin per unit will Bridgeport-T generate if it fixes and sells these reworked shirts?

Gross margin $___ /unit