Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Most manufacturing companies have gross margin goals, and Blue's is no different. Blue's makes lightweight backpacks that are suitable for a number of purposes. Management
Most manufacturing companies have gross margin goals, and Blue's is no different. Blue's makes lightweight backpacks that are suitable for a number of purposes. Management at the company has dictated a strict 50% gross margin goal, and, to date, it has been able to achieve it. Some of the company's financial information is as follows. (a) Given the above information, what is the most Blue's can incur in manufacturing costs and still meet its gross margin goal? Maximum manufacturing cost $ Your answer is correct. Given the above information, what is the most Blue's can incur in manufacturing costs and still meet its gross margin goal? Maximum manufacturing cost $ eTextbook and Media Attempts: 1 of 5 used (b) If the fixed portion of Blue's manufacturing cost is $117,000, what combination of selling price and variable manufacturing cost would fit the corporate gross margin percentage goal, assuming sales volume is 26,000 units?(Round variable manufacturing cost per unit to 2 decimal places, e.g. 15.25.) Selling price $ per unit Variable manufacturing cost $ per unit If the fixed portion of Blue's manufacturing cost is $117,000, what combination of selling price and variable manufacturing cost would fit the corporate gross margin percentage goal, assuming sales volume is 26,000 units?(Round variable manufacturing cost per unit to 2 decimal places, e.g. 15.25.) Selling price $ per unit Variable manufacturing cost $ per unit eTextbook and Media Attempts: 1 of 5 used (c) Your answer is partially correct. Assume now that instead of having a corporate gross margin goal, the company switches to a contribution margin (CM) goal. If this new CM goal is also set at 50%, will the company meet it under the sales, volume, and cost situation described above? Contribution margin ratio % The company meet the contribution margin ratio goal
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