Cases in Cost Management 3rd Edition by John Shank

تمرين 3

(a) Estimate the variable cost per 1000 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 the new product when it is manufactured on AirSeal machinery.