What is the total contribution margin

Reference no: EM133655541

Question: George manages a local camping equipment store, where the top-selling sleeping bag brings in $5,100 of contribution margin for the company each month. The business currently manufactures these sleeping bags, but it's considering a contract with a new supplier fo least $3,600 per month with that extra capacity. a similar quality product. The company's contribution margin will go down to $3,000 next month for the sleeping bags category if George decides to purchase from the supplier instead of manufacturing in-house. If he decides to buy instead of make, there will be available capacity for other products. George estimates that the store can increase contribution margin in its other categories by at Is George better off buying these sleeping bags or making them? what is the total contribution margin ?

Reference no: EM133655541

Questions Cloud

Prepare a production cost report for september : The degree of completion of work-in-process inventory at September 30 was as follows: Direct materials 100% Direct labor 60 Manufacturing overhead 50

How does inflation impact your businesss competitiveness : How does inflation impact your business's competitiveness? What are some of the biggest challenges your business faces due to inflation?

What are some ways task force might address this roadblock : What do you think is the most challenging roadblock to helping homeless youth in neighborhoods? What are some ways the task force might address this roadblock?

Indicate the adjusted balance in each account : Using T accounts, enter the opening balances in the affected accounts, post the journal entries above, and indicate the adjusted balance in each account

What is the total contribution margin : contribution margin in its other categories by at Is George better off buying these sleeping bags or making them? what is the total contribution margin

Create a cash-flow problem because accrued : Investing into a zero coupon bond can create a cash-flow problem because accrued (non-cash) interest income is taxable

Which key indicator changes would most likely lead blithe : Does the current product meet our customers' needs? Which key indicator changes would most likely lead Blithe to ask that question?

Who is a tax planner for a big accounting firm : Who among of the following CPAs is an "other member"? Ray, who is an outside auditor at a big accounting firm May, who is a retired internal auditor Jay

Discuss petes liability to patricia intentional torts irac : Twelve year old Pete received a new bicycle for his birthday. He decided to show his new bike. Discuss Pete's liability to Patricia for intentional torts IRAC.

User Account

All Pages