What is the company contribution margin percentage

Assignment Help Accounting Basics
Reference no: EM132715397

Question: Bikes Manufacturing produces and sells children's bikes at an average price of $120. Its costs are as follows: direct materials. $12; direct labour. $8; variable overhead. $4; sales commission. 5% of price. Its ?xed monthly costs are $47,000.

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.)

Reference no: EM132715397

Questions Cloud

What is the break-even point in boxes : Mo's Delicious Burgers Inc. sells food to university cafeterias for $39 a box. What is the break-even point in boxes
Weighted average cost of capital-sirom scientific solutions : SIROM Scientific Solutions has $8 million in equity and $5 million in bank debt on its balance sheet. The stock price is $50 and the firm has 200,000 shares
What types of standards protect health data : Explain what types of standards protect health data and information systems from unauthorized access.
Calculate the unit product cost for the month : Calculate the unit product cost for the month under variable costing. Prepare the Income Statement for the month, using the variable costing method
What is the company contribution margin percentage : Bikes Manufacturing produces and sells children's bikes at an average price of $120. Its costs are as follows: direct materials. $12; direct labour.
Strategies for profiting from a falling market : Pick one of the stock market bubbles that burst in the past and explain how did the market bubble form? Did the market bubble you selected persist?
What is the profitability index of the project : What is the profitability index (PI) of the project, if the company's cost of capital is 9.81 percent?
Explain the use of flasher box : Explain the use of a Flasher Box. Why would the investigator be considered with EEPROM?
Write a memorandum to respond to Smith Ben query : Write a memorandum to respond to Smith Ben query regarding how to recognize the research and development costs

Reviews

Write a Review

Accounting Basics Questions & Answers

  Compared to a major public accounting firm

The Rules of Conduct applied differently to CPAs who work for a local financial institution that is not CPA-owned, as compared to a major public accounting firm

  What the amount of revenue that should be allocated

What the amount of revenue that should be allocated to the oven, the installation, and to the maintenance contract.Appliance Center is an experienced home

  St marks hospital contains 450 beds the average occupancy

st. marks hospital contains 450 beds. the average occupancy rate is 80 per month. in other words on average 80 of the

  Calculate Crane direct labor rate variance for September

Crane Paints manufactures artist's oil paints. Each 40 ml tube of paint requires 5 minutes of direct labor, Calculate Crane's direct labor rate variance

  The following table presents a summary of ratio analysis

the following table presents a summary of ratio analysis for uncle joes coffee based on the most recent 12 months and 5

  Compute the predetermined overhead rate for each department

Compute the predetermined overhead rate for each department. Compute the total manufacturing costs assigned to jobs in January in each depart-ment.

  Performing accounting and review services

Jones, CPA, entered into a signed contract with Foster Corp. to perform accounting and review services. If Jones repudiates the contract prior to the date performance is due to begin, which of the following is false?

  Additional piece of information

Give one additional piece of information related to the transaction that could be recorded in an information system for a purpose other than the financial statements.

  Should we have rules-based ethics standards

Describe the five cardinal virtues of professional accountants that the article's authors discuss. We've talked about rules-based versus principles-based accounting standards. Should we have rules-based ethics standards?

  What type of taxpayers are considered eligible taxpayers

What type of taxpayers are considered "eligible" taxpayers with regard to special ordinary loss treatment of IRC Section 1244 stock

  What is the acquisition cost of the franchise

14% for four periods = 0.59; Present value of an ordinary annuity of 1 at 14% for four periods = 2.91. What is the acquisition cost of the franchise?

  What is the closing balance of accounts payable

The company purchased $2,000 packaging supplies for computer delivery package on credit. At 30 June 2020 what is the closing balance of Accounts Payable

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd