PARENT FURNITURE COMPANY MANUFACTURES AND SELLS OAK TABLES AND CHAIRS. PRICE AND COST DATA FOR THE FURNITURE FOLLOW: SALES PRICE TABLES CHAIRS $1,200 $100 24 72 6 VARIABLE MANUFACTURING COSTS 768 SALES COMMISSION (6%) 1. CALCULATE THE TOTAL CONTRIBUTION MARGIN AND THE CONTRIBUTION REPRESENTATIVE. MARGIN RATIO FOR EACH SALES 2. WHICH SALES REPRESENTATIVE HAS THE HIGHEST CONTRIBUTION MARGIN RATIO? EXPLAIN WHY.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 11EB: Manufacturing builds and sells switch harnesses for glove boxes. The sales price and variable cost...
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PARENT FURNITURE COMPANY MANUFACTURES AND SELLS
OAK TABLES AND CHAIRS. PRICE AND COST DATA FOR THE
FURNITURE FOLLOW:
SALES PRICE
TABLES CHAIRS
$1,200 $100
24
72
6
VARIABLE MANUFACTURING COSTS 768
SALES COMMISSION (6%)
1. CALCULATE THE TOTAL CONTRIBUTION MARGIN AND THE
CONTRIBUTION
REPRESENTATIVE.
MARGIN RATIO FOR EACH SALES
2. WHICH SALES REPRESENTATIVE HAS THE HIGHEST
CONTRIBUTION MARGIN RATIO? EXPLAIN WHY.
Transcribed Image Text:PARENT FURNITURE COMPANY MANUFACTURES AND SELLS OAK TABLES AND CHAIRS. PRICE AND COST DATA FOR THE FURNITURE FOLLOW: SALES PRICE TABLES CHAIRS $1,200 $100 24 72 6 VARIABLE MANUFACTURING COSTS 768 SALES COMMISSION (6%) 1. CALCULATE THE TOTAL CONTRIBUTION MARGIN AND THE CONTRIBUTION REPRESENTATIVE. MARGIN RATIO FOR EACH SALES 2. WHICH SALES REPRESENTATIVE HAS THE HIGHEST CONTRIBUTION MARGIN RATIO? EXPLAIN WHY.
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