Question
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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