Roadside Inc. manufactures the Megalite, and is reviewing the product's cost structure. Accounting records show these costs: factory space: $250,000 per year insurance: $47,000 per year supervisor salaries: $125,000 per year materials: $5.00 per lamp direct labor: $2.69 per lamp recycling charge: $0.37 per lamp Roadside Inc sells the Megalite to wholesalers for $13.69 each. Calculate Roadside's contribution margin as percent of selling price on the Megalite. (Rounding: tenth of a percent. Report 25.3%, for example, as "25.3".)
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Roadside Inc. manufactures the Megalite, and is reviewing the product's cost structure. Accounting records show these costs:
factory space: $250,000 per year
insurance: $47,000 per year
supervisor salaries: $125,000 per year
materials: $5.00 per lamp
direct labor: $2.69 per lamp
recycling charge: $0.37 per lamp
Roadside Inc sells the Megalite to wholesalers for $13.69 each. Calculate Roadside's contribution margin as percent of selling price on the Megalite. (Rounding: tenth of a percent. Report 25.3%, for example, as "25.3".)
Contribution margin is the excess of selling price over and above the variable cost.
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