Question: (a) Estimate the variable cost per 1,000 sq. ft., on average, to manufacture and ship AirWrap using the AirSeal Equipment. (Assume the average bubble thickness
(a) Estimate the variable cost per 1,000 sq. ft., on average, to manufacture and ship AirWrap using the AirSeal Equipment. (Assume the average bubble thickness is 3/16 inch.)
(b) Estimate the full cost per 1000 sq. ft., on average, to manufacture and ship AirWrap using the AirSeal Equipment.
(c) Comment on the estimated contribution margin and gross margin of AirWrap when produced on AirSeal machinery.
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