Atlantic Manufacturing produces and sells childrens bikes at an average price of $125. Its costs are as follows: direct materials = $11; direct labour = $7; variable overhead = $3; sales commission is 4% of price. Its fixed monthly costs are $46,000.

Using the above cost data, set up a monthly cost equation

Y =

+

X

2. What is the companys contribution margin percentage? (Round your answer to 2 decimal places.)

Contribution margin: %