Margin, Inc. has two productspicture frames and candle holders. Financial data for both the products follows: Picture
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Question:
Margin, Inc. has two productspicture frames and candle holders. Financial data for both the products follows:
| Picture Frames | Candle Holders |
Units sold | 2,100 units | 700 units |
Sales price per unit | $700 | $1,000 |
Variable manufacturing cost per unit | 310 | 650 |
Sales commission (% of sales) | 7% | 4% |
Margin has two sales representativesJack Lynch and Peter Cho. Each sales representative sold a total of 1,400 units during the month of March. Jack had a sales mix of 80% picture frames and 20% candle holders. Peter had a sales mix of 70% picture frames and 30% candle holders. What is the contribution margin ratio for picture frames and candle holders, respectively?
A) 49%; 31% B) 7%; 4%
C) 56%; 35% D) 44%; 65%
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