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Cinelli purchases battery powered bikes from a manufacturer for $1,491 per unit and then sells them to its customers for $2,400 each. The companys monthly
Cinelli purchases battery powered bikes from a manufacturer for $1,491 per unit and then sells them to its customers for $2,400 each. The companys monthly selling and administrative costs are the following:
Costs | Cost Formula | |
---|---|---|
Selling: | ||
Advertising | $ 967 | per month |
Sales salaries and commissions | $ 4,786 | per month, plus 5% of sales |
Delivery of bikes to customers | $ 58 | per unit sold |
Utilities | $ 658 | per month |
Depreciation of sales facilities | $ 4,919 | per month |
Administrative: | ||
Executive salaries | $ 13,469 | per month |
Insurance | $ 691 | per month |
Clerical | $ 2,470 | per month, plus $35 per unit sold |
Depreciation of office equipment | $ 888 | per month |
Last month Cinelli sold 61 units. How much was the company's total contribution margin for the month?
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