Solved

Margin,Inc Margin Has Two Sales Representatives-Jack Lynch and Peter Cho

Question 109

Multiple Choice

Margin,Inc.has two products-picture 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 310650 Sales commission (% of sales)  7%4%\begin{array}{|l|r|r|} \hline& \begin{array}{r}\text { Picture } \\\text { Frames }\end{array} & \begin{array}{r}\text { Candle } \\\text { Holders }\end{array} \\\hline \text { Units sold } & 2,100 \text { units } & 700 \text { units } \\\hline \text { Sales price per unit } & \$ 700 & \$ 1,000 \\\hline \text { Variable manufacturing cost per unit } & 310 & 650 \\\hline \text { Sales commission }(\% \text { of sales) } & 7 \% & 4 \% \\\hline\end{array} Margin has two sales representatives-Jack 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) 56%; 35%
B) 49%; 31%
C) 7%; 4%
D) 44%; 65%

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents