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What is the company contribution margin

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Reference no: EM132918648

Rag 'n' Bone Mfg. Ltd. Produces and sell's high end tires for bikes at an average price of $80. It costs are as follows:

Materials                   $17.50
Labour                        $13.50
Variable Overhead            $3.00
Sales Commission              5%
Fixed Costs                    $50,000

Required:

Problem 1: Using the information above, set up a monthly cost equation.

Problem 2: What is the company's contribution margin and it contribution margin on a percentage basis?

Reference no: EM132918648

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