Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Direct material $ 77,000 Direct labor 31,000 Manufacturing overhead 17,000 Total costs $125,000 Volume in batch 20,000 Scrambling, Mitzy has gone back to her original
Direct material $ 77,000 Direct labor 31,000 Manufacturing overhead 17,000 Total costs $125,000 Volume in batch 20,000 Scrambling, Mitzy has gone back to her original supplier of collars, which thankfully now has a large quantity it can ship to her. These collars cost $0.50 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, Trihs-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 Trihs-T generate if it fixes and sells these reworked shirts
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started