Assume Digby expands operations in Asia Pacific in the coming year. In doing so, they have added capacity to fill all demand in-house and have increased automation to reduce labor cost by 10%.
For clarity, assume the following are true:
- Daze material cost is still $12.75.
- Daze labor cost last year was $9.00.
- Daze will be priced at $32.50 per unit, in American dollars.
- Shipping costs from the Americas to Asia Pacific are $2.50 per unit.
What will Daze’s contribution margin be in Asia Pacific for the coming year?
25.4%
35.8%
28.2%
33.1%
Jos Simulation Answered question April 6, 2025
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