A winter coat manufacturer is deciding whether to manufacture a puffer coat or a parka. For...
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A winter coat manufacturer is deciding whether to manufacture a puffer coat or a parka. For the puffer coat the cost of producing each item is $106.02 and they will sell each item to a reseller for $277.96. For the parka the cost of producing each item is $116.72 but they will sell each item to a reseller for $333.55. a) What is the contribution rate for manufacturing the puffer coats? Your answer should be accurate to at least two decimal places. Contribution rate for puffer coat: 0.0 % b) What is the contribution rate for manufacturing the parkas? Your answer should be accurate to at least two decimal places. Contribution rate for parka: 0.0 % c) Which type of coat has the better contribution rate? What coat has the better contribution rate? Please make a selection. A winter coat manufacturer is deciding whether to manufacture a puffer coat or a parka. For the puffer coat the cost of producing each item is $106.02 and they will sell each item to a reseller for $277.96. For the parka the cost of producing each item is $116.72 but they will sell each item to a reseller for $333.55. a) What is the contribution rate for manufacturing the puffer coats? Your answer should be accurate to at least two decimal places. Contribution rate for puffer coat: 0.0 % b) What is the contribution rate for manufacturing the parkas? Your answer should be accurate to at least two decimal places. Contribution rate for parka: 0.0 % c) Which type of coat has the better contribution rate? What coat has the better contribution rate? Please make a selection.
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Cost Management Measuring Monitoring and Motivating Performance
ISBN: 978-0470769423
2nd edition
Authors: Leslie G. Eldenburg, Susan K. Wolcott
Posted Date:
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