Bikes Manufacturing produces and sells children’s bikes at an average price of $80. Its costs are...
|
Bikes Manufacturing produces and sells children’s bikes at an average price of $80. Its costs are as follows: direct materials, $10; direct labour, $6; variable overhead, $2; sales commission, 5% of price. Its fixed monthly costs are $35,000. |
| Required: |
| 1. |
Using the above cost data, set up a monthly cost equation. |
| y= + X |
| 2. |
What is the company’s contribution margin percentage? (Round your answer to 2 decimal places.) |
| contribution margin= % |
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Bikes Manufacturing produces and sells children’s bikes at an
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