Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Generation Furniture Company manufactures and sells oak tables and chairs. Price and cost data for the furniture follow: Tables Chairs Sales Price $500 $50 Variable

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

Tables

Chairs

Sales Price

$500

$50

Variable manufacturing costs

345

7

Sales commission (6%)

30

3

Generation Furniture has three sales representatives: Al, Brody, and Camara. Al sold 60 tables with 6 chairs each. Brody sold 80 tables with 4 chairs each. Camara sold 50 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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

External Quality Audit Has It Improved Quality Assurance In Universities

Authors: Mahsood Shah, Chenicheri Sid Nair

1st Edition

1843346761, 978-1843346760

More Books

Students also viewed these Accounting questions