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Ch08 Homework PDR Question 6 of 10 < > 0.5/1 E Play-360 is a company that builds custom playground sets for organizations and businesses.

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Ch08 Homework PDR Question 6 of 10 < > 0.5/1 E Play-360 is a company that builds custom playground sets for organizations and businesses. Its typical strategy is to get clients locked into one of its base models and then upsell them on important add-ons. Without at least a few of these add-ons, the business is barely profitable. One potential client, Jennifer, is a savvy entrepreneur who provides daycare services for her staff on-site. Jennifer commits to the Monkey Slider, one of the smaller sets, at a price of $3,400. While the salesperson works hard to sell her add-ons, Jennifer is firm about sticking with the base model. Installation is included in all models, so once the purchase is complete, a date is set for delivery and installation Play-360 incurs the following costs associated with its sale to Jennifer: 8 hours of direct labor ($31/hour), applied MOH rate of $11/direct labor hour, and $2,400 for the cost of the Monkey Slider (a) Your answer is correct. How much gross margin did Play-360 generate on its sale to Jennifer? Gross margin $ eTextbook and Media 664 Attempts unlimited.

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