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Homework answers / question archive / Garfield Corporation is considering building a new plant in Canada
Garfield Corporation is considering building a new plant in Canada. It predicts sales at the new plant to be 50,000 units at $7/unit. Below is a listing of estimated expenses: Category Materials Labor Overhead Marketing/Admin % of Annual Expense that Total Annual Expenses are Fixed $40,000 10% $60,000 30% $80,000 30% $70,000 50% A Canadian firm was contracted to sell the product and will receive a commission of 20% of the sales price. No U.S. home office expenses will be allocated to the new facility. The margin of safety percentage for Duncan Enterprises is (Round any intermediary percentage calculations to the nearest whole percent.) A. 3.61%. B. 172.32%. C. 38.27% D. 27.68%
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