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The bill of materials for each product at Tai's Olfice Supply is very specific, right down to the number of casters needed for each office

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The bill of materials for each product at Tai's Olfice Supply is very specific, right down to the number of casters needed for each office chair. Tai recognizes how important these documents are for planning purposes, but his operations managers appreciate them as well since they use this nation to guide their material requisitions when it's time for production. Here are the budgeted product costs and selling prices, respectively, for the company's three key products: Tai has fine-tuned all cost expectations for his products, and his selling prices are quite stable for each product, as well. So, to say Tai was surprised when his accountant reported significantly less profit margin than what he was expecting is the understatement of the year, According to the accountant, the difference is almost entirely attributable to the significant and recent increase in shipping costs for the con. iny's raw materials. These higher freight costs caused a 20% increase to the budgeted product costs presented above. Gross margin percentage per the information provided above is as follows. Gross margin percentage after recognizing the 20% higher product costs is as follows: What are Tai's options for managing this unexpected increase in shipping costs? Identify at least three options. Because of th. Igh selling. general, and administrative expenses in his business, Tai needs to generate a gross margin of at least 28% on all products in order to stay profitable. Which of the options that you described would you suggest he explore most fervently, and why

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