K&J Web Designs creates Web sites for businesses. K&J has a basic Web site creat
ID: 2715093 • Letter: K
Question
K&J Web Designs creates Web sites for businesses. K&J has a basic Web site creation package that it offers for a flat fee of $770. This package includes everything that a business would need to have a simple but functional Web site built. K&J estimates that each of these Web sites should take, on average, 8.3 hours of Web designer time. K&J pays its Web design employees an average of $36 per hour.
Last month, K&J sold and built 150 Web sites for $770 each. Web design employees worked a total of 890 hours at a total payroll cost of $41,830.
(a)
b.
Calculate the standard amount of contribution margin (sales price less variable labor cost) that K&J would expect to make on an average Web site. (Round answer to 0 decimal places, e.g. 125.)
c. Calculate the actual amount of contribution margin (sales price less variable labor cost) that K&J made, on average, on each Web site in the past month. (Round answer to 0 decimal places, e.g. 125.)
* Kindly please show workings. Thank you
K&J Web Designs creates Web sites for businesses. K&J has a basic Web site creation package that it offers for a flat fee of $770. This package includes everything that a business would need to have a simple but functional Web site built. K&J estimates that each of these Web sites should take, on average, 8.3 hours of Web designer time. K&J pays its Web design employees an average of $36 per hour.
Last month, K&J sold and built 150 Web sites for $770 each. Web design employees worked a total of 890 hours at a total payroll cost of $41,830.
Explanation / Answer
K&J Web Designs creates Web sites for businesses. K&J has a basic Web site creat
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