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Question 6 of 10 View Policies Current Attempt in Progress -/1 Play-360 is a company that builds custom playground sets for organizations and businesses.
Question 6 of 10 View Policies Current Attempt in Progress -/1 Play-360 is a company that builds custom playground sets for organizations and businesses. Its typical strategy is to get clients locked into one of its base models and then upsell them on important add-ons. Without at least a few of these add-ons, the business is barely profitable. One potential client, Jennifer, is a savvy entrepreneur who provides daycare services for her staff on-site. Jennifer commits to the Monkey Slider, one of the smaller sets, at a price of $3,400. While the salesperson works hard to sell her add-ons, Jennifer is firm about sticking with the base model. Installation is included in all models, so once the purchase is complete, a date is set for delivery and installation. Play-360 incurs the following costs associated with its sale to Jennifer: 8 hours of direct labor ($31/hour), applied MOH rate of $11/direct labor hour, and $2,400 for the cost of the Monkey Slider. (b) (a) How much gross margin did Play-360 generate on its sale to Jennifer? Gross margin $ eTextbook and Media Save for Later Attempts: unlimited Submit Answer
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