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purchases bikes from a manufacturer for $1,486 per unit and then sells them to its customers for $2,700 each. monthly selling and administrative costs are
purchases bikes from a manufacturer for $1,486 per unit and then sells them to its customers for $2,700 each.
monthly selling and administrative costs are the following:
Costs | Cost Formula | |
---|---|---|
Selling: | ||
Advertising | $ 954 | per month |
Sales salaries and commissions | $ 4,794 | per month, plus 3% of sales |
Delivery of bikes to customers | $ 63 | per unit sold |
Utilities | $ 654 | per month |
Depreciation of sales facilities | $ 4,985 | per month |
Administrative: | ||
Executive salaries | $ 13,565 | per month |
Insurance | $ 703 | per month |
Clerical | $ 2,475 | per month, plus $38 per unit sold |
Depreciation of office equipment | $ 877 | per month |
total contribution margin for the month?
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