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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.

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