For Baldwin, its product Baker ended its European Round $4$ with a unit price of $30\mathrm{.}00,$ material costs of $$9\mathrm{.}92,$ labor costs of $$9\mathrm{.}60,$ unit shipping costs of $$3\mathrm{.}00,$ and a current Gross Margin of $24\mathrm{.}06\%.$ Baldwin$$s Production Manager wants to get the contribution margin to $36\%$ and has asked the R&D and Production Managers to evaluate cost decreases. What percent reduction must the cost be to reach a contribution margin of $36\%,$ all other variables held constant?

Question $7$ options:

$1)$

$15\mathrm{.}7\%$

$2)$

$13\mathrm{.}0\%$

$3)$

$33\mathrm{.}1\%$

$4)$

$6\mathrm{.}0\%$