Durant Company manufactures glass bottles for dairy products. The contribution margin is $0.42 per bottle. Durant just received notification that one of its orders for 180,000 bottles contained misprinted labels, and thus it had to recall and reprint the bottle labels. If it will cost $0.37 per bottle to reprint the labels and $1,000 to reship the bottles, what will the net contribution margin be after the recall?
Durant Company manufactures glass bottles for dairy products. The contribution margin is $0.42 per bottle. Durant just received notification that one of its orders for 180,000 bottles contained misprinted labels, and thus it had to recall and reprint the bottle labels. If it will cost $0.37 per bottle to reprint the labels and $1,000 to reship the bottles, what will the net contribution margin be after the recall?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Durant Company manufactures glass bottles for dairy products. The contribution margin is $0.42 per bottle. Durant just received notification that one of its orders for 180,000 bottles contained misprinted labels, and thus it had to recall and reprint the bottle labels. If it will cost $0.37 per bottle to reprint the labels and $1,000 to reship the bottles, what will the net contribution margin be after the recall?
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