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alex41 [277]
3 years ago
15

Now click on the BACKPACK tab. As you select each design component, you will add to the DESIRABILITY of your backpack and its PR

ODUCTION COST. Our financial team has asked us to aim for a production cost that is 50% of the retail price. Knowing that the average retail price is around $24, what is a reasonable production cost for a backpack in this segment
Business
1 answer:
Sloan [31]3 years ago
8 0

Answer: $12

Explanation:

The reasonable production cost for a backpack in this segment will be calculated as 50% multiplied by the average retail price which will be:

= 50% × $24

= 50/100 × $24

= 0.5 × $24

= $12

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                                                       Guard       Guard       Guard

selling price                                   $260         $330        $205

variable cost                                  $120          $180         $135

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machine time                                 9 min.        12 min.      11 min.

lbs. of pellets                                  12              7                11

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machine hour

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fishing guard since its contribution margin per machine hour is much lower than the rest of the products

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Golf Guard ($150)

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