6-27 ross white’s machine shop uses 2,500 brackets during the course of a year, and this usage is relatively constant throughout the year. these brackets are purchased from a supplier 100 miles away for $15 each, and the lead time is 2 days. the holding cost per bracket per year is $1.50 (or 10% of the unit cost), and the ordering cost per order is $18.75. there are 250 working days per year.

Garfield corporation is considering building a new plant in canada. it predicts sales at the new plant to be 50,000 units at $5.00/unit. below is a listing of estimated expenses. category total annual expenses % of annual expense that are fixed materials $50,000 10% labor $90,000 20% overhead $40,000 30% marketing/admin $20,000 50% a canadian firm was contracted to sell the product and will receive a commission of 10% of the sales price. no u.s. home office expenses will be allocated to the new facility. the contribution margin ratio for garfield corporation is