4 90 whook Bikes Manufacturing produces and sells children's bikes at an average price of $60. Its costs are as follows: direct materials, $16, directi labour, $7; variable overhead, $4, sales commission, 10% of price. Its fixed monthly costs are $40,000. Required: 1. Using the above cost data, set up a monthly cost equation. 01 2. What is the company's contribution margin percentage? (Round your answer to 2 decimal places.) The following data relating to units shipped and total shipping expense have been assembled by Archer Company, a manufacturer of large, custom-built air-conditioning units for commercial buildings: Total Units Shipping Month January Shipped Expense $3,150 February 6 2,900 March 6 2,800 April 2,850 May 1,600 June 14 5,600 July 1,400 Required: 1. Estimate a cost formula for shipping expense using the high-low method. Y=