Bikes Manufacturing produces and sells children's bikes at an average price of $80. Its costs are as follows: direct materials, $14; direct labour, $9; variable overhead, $4; sales commission, 5% of price. Its fixed monthly costs are $38,000.

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:( ) %