Bikes Manufacturing produces and sells children?s bikes at an average price of $60. Its costs are as follows: direct materials, $14; direct labour, $6; variable overhead, $4; sales commission, 5% of price. Its fixed monthly costs are $49,000.

Required: 1. Using the above cost data, set up a monthly cost equation.

2. What is the company's contribution margin percentage? (Round your answer to 2 decimal places.)

Transcribed Image Text:

Y= + X Contribution margin % Y= + X Contribution margin %

Answer rating: 100% (QA)

Total variable cost Direct material 14 direct labor ... View the full answer