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Supply chain shortages generally have increased direct material costs. Bad A$$ Packaging (BAP) uses corrugated cardboard to produce boxes for Amazon. BAP's expected sales are
Supply chain shortages generally have increased direct material costs. Bad A$$ Packaging (BAP) uses corrugated cardboard to produce boxes for Amazon. BAP's expected sales are 5,000 bundles of boxes for $46.00 per bundle with a contribution margin of 35.0%. Using a highly automated production process, BAP can produce a bundle of boxes in 15 minutes (0.25 of an hour) at a cost of $20.00 per hour (includes direct labor and variable overhead). The bundle requires 15 pounds of cardboard. Compute the allowable price per pound BAP can pay and maintain the existing contribution margin %. O $1.40 O $1.66 $2.85 $5.00 None of the other answers are correct
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