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Simple Styles Is a Dress Manufacturer

Question 170

Essay

Simple Styles is a dress manufacturer.The company purchases fabric with a list price of $200 per bolt and pays shipping charges of $3 per bolt.Each bolt contains 100 yards of fabric.Simply Styles receives a volume discount of 15% per bolt.Each dress uses a standard quantity of 2 yards of fabric.
Required:
Calculate the standard cost of material for one dress.

Correct Answer:

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[$200 + $3 - ($200 × .15)] = $...

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