At the end of October, Linda lamented the company's situation: in the middle of production of Bramble-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. Bramble-T could get a slightly different premade collar, from a new supplier, at the same cost. So Linda went ahead with the order, hoping it wouldn't delay production or affect the quality of the shirts. As it turned out, the new collars failed Bramble-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 Direct labor $75,000 27.000 Manufacturing overhead 14,000 Total costs $116,000 Volume in batch 20.000 (a) How much cost does Bramble-T have tied up in each of these T-shirts? If it normally sells these shirts for $13 to the retailer, how much gross margin per unit does it generate on these sales? (Round answers to 2 decimal places, e.g. 15.25.) Total cost /unit Gross margin $ /unit (b) Scrambling, Linda has gone back to her original supplier of collars, which thankfully now has a large quantity it can ship to her. These collars cost $0.40 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, Bramble-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 Bramble-T generate if it fixes and sells these reworked shirts? (Round answer to 2 decimal places, eg. 15.25.) Gross margin /unit