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CAR-63922 company purchases battery powered bikes from a manufacturer for $1,494 per unit and then sells them to its customers for $3,500 each. The companys
CAR-63922 company purchases battery powered bikes from a manufacturer for $1,494 per unit and then sells them to its customers for $3,500 each. The companys monthly selling and administrative costs are the following:
Costs | Cost Formula | |
---|---|---|
Selling: | ||
Advertising | $ 961 | per month |
Sales salaries and commissions | $ 4,774 | per month, plus 5% of sales |
Delivery of bikes to customers | $ 61 | per unit sold |
Utilities | $ 652 | per month |
Depreciation of sales facilities | $ 4,988 | per month |
Administrative: | ||
Executive salaries | $ 13,493 | per month |
Insurance | $ 680 | per month |
Clerical | $ 2,531 | per month, plus $36 per unit sold |
Depreciation of office equipment | $ 863 | per month |
Last month CAR-63922 sold 61 units. How much was the company's total contribution margin for the month?
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