Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

CAR-71690 company purchases battery powered bikes from a manufacturer for $1,515 per unit and then sells them to its customers for $2,900 each. The

image text in transcribedimage text in transcribedimage text in transcribed

CAR-71690 company purchases battery powered bikes from a manufacturer for $1,515 per unit and then sells them to its customers for $2,900 each. The company's monthly selling and administrative costs are the following: Costa 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 $ 958 per month $ 4,785 per month, plus 5% of sales $ 61 per unit sold $ 641 per month. $ 4,965 per month $ 13,545 per month $710 per month $ 2,504 per month, plus $41 per unit sold $ 859 per month Last month CAR-71690 sold 59 units. How much was the company's total contribution margin for the month? $ 89,385 $ 81,715 $ 67,142 $ 103,958

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

Financial Accounting

Authors: Jeffrey Waybright, Liang Hsuan Chen, Rhonda Pyper

1st Canadian Edition

9780132147538, 132889714, 013214753X , 978-0132889711

More Books

Students also viewed these Accounting questions

Question

What is the effect of word war second?

Answered: 1 week ago

Question

1 Does it make any claims about the effects of the policies?

Answered: 1 week ago