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Board Senseless Games & Hobbies purchases pool tables from a reputable manufacturer and sells them at the retail level. The company sold 75 pool tables
Board Senseless Games & Hobbies purchases pool tables from a reputable manufacturer and sells them at the retail level. The company sold 75 pool tables in February, recording $540,000 in revenues. The average cost of a pool table from their manufacturer is $5,400. Board Senseless has always kept careful accounting records, the company reports non-product costs for the month as follows:
Non-product Costs | Cost formula |
Advertising expenses | $1,500 per month |
Delivery of pool tables | $150 per pool table sold |
Sales salaries and commissions | $3,200 per month, plus 10% of sales |
Utilities for marketing office | $1,200 per month |
Depreciation on sales facilities | $1,700 per month |
Executive salaries | $180,000 per year |
Clerical wages | $2,000 per month, plus $30 per pool table sold |
Insurance | $600 per month |
What amount would Board Senseless report as average contribution margin per unit in February?
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