Question

Ancestry Furniture Company manufactures and sells oak tables and chairs. Price and cost data for the furniture follow E(Click the icon to view the price and cost data.) Ancestry Furniture has three sales representatives: Al, Brody, and Camara. Al sold 70 tables with 4 chairs each. Brody sold 100 tables with 6 chairs each. Camara sold 80 tables with 8 chairs each Read the requirements

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.

A Answer 2 Part 1) Statement for calculation of contribution margin and contribution margin ratio 4 Particulars AI Brody Camara 5 Sales Revenue of Table 49000 70000 56000 (70*700) L (100*700) (80*700) 7 Sales Revenue of chairs 600 800 (6*100) (8*100) 9 Total Revenue 70600 56800 10 Less Variable cost 11 Variable cost Table 37730 53900 43120 12 (70*539) (100*539) (80*539) 13 Variable cost Chair 68 102 1 36 14 (4*17) 96*17) (8*17) 15 Sales Commission (8%) 3952 5648 4 544 (49400*8%) (70600*8%) (56800*8%) 17 Contribution margin 7650 1 0950 9000 18 Contribution margin ratio 15.51% 15.85% (17650/49400)*100) ((10950/70600)*100) (9000/56800)*100) 16 20 23 21 Thus the final answer Brody Camara Contribution margin 7650 10950 9000 Contribution margin ratio 15.49% 15.51% 15.85% 26 Part 2) Camara has highest contribution margin ratio, because the sales mix of camara has high no. of chairs, as chair 27 has higher contribution margin raio as compared to table.