Father Furniture Company manufactures and sells oak tables and chairs. Price and cost data for the furniture follow: 

Father Furniture has three sales representatives: Adam, Ben, and Caleb. Adam sold 100 tables with 6 chairs each. Ben sold 110 tables with 4 chairs each. Caleb sold 80 tables with 8 chairs each. 

Requirements 

1. Calculate the total contribution margin and the contribution margin ratio for each sales representative (round to two decimal places). 

2. Which sales representative has the highest contribution margin ratio? Explain why.

Transcribed Image Text:

Sales Price Variable manufacturing costs Sales commission (10%) Tables $ 800 600 80 Chairs $70 25 7