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please help At the end of October, Ruth lamented the company/s situationt in the midde of production of Swifty-T's most popular long-1ecve 1shirt, the coinoary
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At the end of October, Ruth lamented the company/s situationt in the midde of production of Swifty-T's most popular long-1ecve 1shirt, the coinoary ran out of its unual collar, purchased from one maln supplics, Tut wupplier was abo sold out Swifty-T could get a sitghty ditferent premade collac trom a new wpplier, at the ame cost So Ruth went ahead with the ordec, hoping it wouldn't delay production or affect the quality of the shirts. As it turned out, the new collars falled Swity-T/s quality control testine Stuck with unwearable Tahirts, the compary was also in a bind withits retalloutlets which wanted more shirts to sellt The costs to produce this most recent batch of shirts is as follows. Volume in batch 20,000 (a) How much cost does Swifty-T have tied up in each of these T-shirts? If it normally sells these shirts for $11 to the retaller, how much gross margin per unit does it generate on these sales? (Round answers to 2 decimal places, es. 15.25.) Total cost funit Grossmargin hunit 118,000/20,000=5.90 115.90=5.10 (b) Scrambling, Ruth has gone back to her original supplier of collars, which thankfully now has a large quantity it can ship to her. These collars cost 50.55 exch 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 warchouse for a future batch in order to fox the botched T-shirts, though, Sw. fty.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 seling price How much gross marein per unit will Swifty-T generate if it foes and sells these reworked shirts? (Rourd arswer to 2 decimal places cos,1525. Grossmargin Arit Step by Step Solution
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