e) Homepage-Cen\'×ELogn with Centen×? Connect Registratx, D chapter 6 Cezto.mhed
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e) Homepage-Cen'×ELogn with Centen×? Connect Registratx, D chapter 6 Cezto.mheducation.com/hm.tpx?-0.7003096 165846298 1528169030144 xm How to Cakculate ::: Apps-Blackboard Learn -Course Information Learning i My Cour Edit My Resume-k D centen al Colley oQuestion 4 fof 5) 10.00 points Bikes Manufacturing produces and sells children's bikes at an average price of $120 lts costs are as follows direct materials S 12 direct labours6. variable overhead. S4 sales commission 5% of price fixed monthly costs are $54000 Required: 1. Using the above cost data set up a monthly cost equation 2. What is the companys margin percentage? (Round your answer to 2 decimal places) Contribution margin Reterences Book & Resources WorksheetExplanation / Answer
sales comission = $120 * 5% =>$6.
total variable cost = $12 direct material +$6 direct labour + $4 variable overhead +$6 sales commission
=>$28.
now,
1. cost equation :
Y = 54,000 + $28 x................(fixed cost + variable cost per unit *x)
2.contribution margin % = 76.67%
contribution margin % = contribution / sale price *100
contribution per unit = $120 - 28 =>$92.
contribution margin % = $92 / 120 *100
=>76.67%.
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