Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

CAR-98440 company purchases battery powered bikes from a manufacturer for $1,490 per unit and then sells them to its customers for $3,000 each. The

image text in transcribed

CAR-98440 company purchases battery powered bikes from a manufacturer for $1,490 per unit and then sells them to its customers for $3,000 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 $ 951 per month $ 4,825 per month, plus 41 of sales. $ 58 per unit sold $ 670 per month $ 4,925 per month $ 13,416 per month $707 per month $ 2,502 per month, plus $42 per unit sold $ 885 per month Last month CAR-98440 sold 56 units. How much was the company's total contribution margin for the month? O$95,760 O$ 84,560 O$ 83,440 O$72.240

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

Managerial Accounting

Authors: Ray Garrison, Theresa Libby, Alan Webb

9th canadian edition

1259269477, 978-1259269479, 978-1259024900

More Books

Students also viewed these Accounting questions