What is the total contribution margin

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Reference no: EM133971682

Question

George manages a local camping equipment store, where the top-selling sleeping bag brings in $5,100 of contribution margin for the company each month. The business currently manufactures these sleeping bags, but it's considering a contract with a new supplier fo least $3,600 per month with that extra capacity. a similar quality product. The company's contribution margin will go down to $3,000 next month for the sleeping bags category if George decides to purchase from the supplier instead of manufacturing in-house. If he decides to buy instead of make, there will be available capacity for other products. George estimates that the store can increase contribution margin in its other categories by at Is George better off buying these sleeping bags or making them? what is the total contribution margin ?

Reference no: EM133971682

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