Bikes Manufacturing produces and sells childrens bikes at an average price of $60. Its costs are as follows: direct materials = $11; direct labour = $7; variable overhead = $3; sales commission is 5% of price. Its fixed monthly costs are $36,000.

Required:

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

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