In the decision of whether or not to rework the bad batch of T-shirts, how much of the T-shirt cost was sunk? (Round answer to 2 decimal places, e.g. 15.25.) Sunk cost If Coronado-T could have sold the botched shirts in as-is condition for $10.20 per shirt to a salvage store, would it have been better off than fixing them? Gross margin $ 6.5 /shirt Coronado-t would have been V /unit selling them as-is.

In the decision of whether or not to rework the bad batch of T-shirts, how much of the T-shirt cost was sunk? (Round answer to 2 decimal places, es. 15.25.) Sunk cost 5 /shirt If Coronado-T could have sold the botched shirts in as-is condition for $10.20 per shirt to a salvage store, would it have been better off than fixing them? Grossmargin 5 lunit Coronado-t would have been selling themas-is. At the end of October, Elizabeth lamented the company's situation: in the middle of production of Coronado-T's most popular iong: sleeve T-shirt, the company ran out of its usual collars, purchased from one main supplier. That supplier was also sold out Coronado-T could get a slightly different premade collar, from a new supplier, at the same cost. So Elizabeth went ahead with the order, hoping it wouldn't delay production or affect the quality of the shirts. As it turned out, the newrcollars failed Coronado-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. How much cost does Coronado-T have tied up in each of these T-shirts? If it normally sells these shirts for $12 to the retailer, how much gross margin per unit does it generate on these sales? (Round answers to 2 decimal places, eg. 15.25.) Total cost Grossmargin /unit /unit Attempts: 1 of 3 used b) Your answer is correct Scrambling. Elizabeth 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, Coronado-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 Coronado-T generate if it fixes and sells these reworked shirts? (Round answer to 2 decimal places, eg. 15.25.) Grossmargin /unit