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what is the $5,847,068 Figure 2 must be multiplied by the volume increase (and not the price decrease) and the ongoing support and maintenance cost

what is the $5,847,068

Figure 2 must be multiplied by the volume increase (and not the price decrease) and the ongoing

support and maintenance cost for the RFID technology must be added to overhead and (b) this

amount (US$5,847,068) leads to too great a gross profit percentage (31.4%). By using the maximum

allowable cost of goods sold figure to preserve the 29.8% gross profit figure, BabyFreedom does

preserve some ability to assist its suppliers in adopting the barcode technology and is protected (for

now) from having to press for reductions in the cost of their raw materials.

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