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1) Zesty Tomato Company manufactures jam and ketchup. Sales price and cost data for both products follow Sales price Variable manufacturing costs Sales commission
1) Zesty Tomato Company manufactures jam and ketchup. Sales price and cost data for both products follow Sales price Variable manufacturing costs Sales commission (10%) The company has three sales representatives: Paul Kowalski Miriam Omer Jam $20.00 12.00 2.00 Sales Revenue (No of units sold-sale price per unit) Variable costs: Variable manufacturing costs (No of units sold-cost per unit) Units Sold Jam 2,000 2,520 2,300 Ketchup $42.00 20.00 4.20 May Sasaki Calculate the total contribution margin and the contribution margin ratio for each sales representative. Round dollar amounts to nearest dollar and ratio to two decimal places. Paul Miriam May $X Ketchup 750 650 900 Jam Ketchup Sales commission (10% of sale revenue) Contribution margin Contribution margin ratio (Contribution margin/Total sales remur) Jam Ketchup Jam Ketchup $X X xxxxx** X X% $X X xxxxxx X X% ****** 2) Healthy Environs Company provides cleaning services for residential and commercial customers. Following are data for the month of June Residential Business Segment Number of customers Service revenue Variable costs Contribution margin Fixed costs Operating income For each type of customer, determine both the contribution margin per customer and the contribution margin ratio. Round to two decimal places. Show your computations. What type of service is more profitable? Contribution margin per 600 $ 48,000 14.000 34,000 Business Segment Residential Commercial Residential 5X/X customers Commercial $X/X customers Commercial Total contribution margin Number of customers 5X/SX 5X/SX Contribution margin Net service revenue 400 $40,000 22.000 18,000 Total 1,000 $68,000 36,000 52,000 41,00d $11.000 customer 5X per customer SX per customer Contribution margin ratio
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