Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Board Senseless Games & Hobbies purchases pool tables from a reputable manufacturer and sells them at the retail level. The company sold 75 pool tables

image text in transcribed

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 thei 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Public Sector Accounting

Authors: Rowan Jones, Maurice Pendlebury

6th Edition

0273720368, 9780273720362

More Books

Students also viewed these Accounting questions

Question

Why is rejecting ????0 a reliable decision?

Answered: 1 week ago

Question

What is a verb?

Answered: 1 week ago

Question

Recognize and discuss the causes of culture shock

Answered: 1 week ago