Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

CAR-42214 company purchases battery powered bikes from a manufacturer for $1,505 per unit and then sells them to its customers for $3,200 each. The

image text in transcribed

CAR-42214 company purchases battery powered bikes from a manufacturer for $1,505 per unit and then sells them to its customers for $3,200 each. The company's monthly selling and administrative costs are the following: Costs Selling: Advertising Sales salaries and commissions Delivery of bikes to customers Utilities Depreciation of sales facilities Administrative: Executive salaries Insurance Clerical Depreciation of office equipment Cost Formula $ 962 per month $ 4,883 per month, plus 6% of sales $ 58 per unit sold $ 634 per month $ 4,989 per month $ 13,460 per month $ 709 per month $ 2,542 per month, plus $42 per unit sold. $ 888 per month i Last month CAR-42214 sold 59 units. How much was the company's total contribution margin for the month? $106,023 $88,795 $100,005 $82,777

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

Forensic Accounting

Authors: Robert Rufus, Laura Miller, William Hahn

1st Edition

133427528, 133050475, 9780133427523, 978-0133050479

More Books

Students also viewed these Accounting questions

Question

14. What is a run test, and when is it used?

Answered: 1 week ago