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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 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
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