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 $730. 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, 8.8 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 160 Web sites for $730 each. Web design employees worked a total of 830 hours at a total payroll cost of $39,010. Collapse question part
Calculate the standard amount of contribution margin.