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At the end of October, Karen lamented the company's situation: in the middle of production of Sandhill-T's most popular long-sleeve Tshirt, the company ran out

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At the end of October, Karen lamented the company's situation: in the middle of production of Sandhill-T's most popular long-sleeve Tshirt, the company ran out of its usual collars, purchased from one main supplier. That supplier was also sold out. Sandhill-T could get a slightly different premade collar, from a new supplier, at the same cost. So Karen went ahead with the order, hoping it wouldn't delay production or affect the quality of the shirts. As it tumed out, the new collars failed Sandhill-T's quality control testing. Stuck with unwearable T-shirts, the company was also in a bind withits retail outlets, which wanted more shirts to sell! The costs to produce this most recent batch of shirts is as follows. How much cost does Sandhill- have tied up in each of these T-shirts? If it normally sells these shirts for $14 to the retatler, how much gross margin per unit does it generate on these sales? (Round answar to 2 decimal placos, es. 15.25.) Total cost Gross margin Scrambling. Karen has pone back to her original supplier of collars, which thankfully now has a large quantity it can ship to her. These collars cost $0.50 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, Sandhill-T will need to incur an extra $2 per shirt in labor 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 Sandhill-T generate if it fixes and sells these reworked shirts? (Round answer fo 2 decimat. places, es.15.25.) Gross mangin Aunit

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