Question

Ancestry Furniture Company manufactures and sells oak tables and chairs. Price and cost data for the furniture follow: (Click the icon to view the price and cost data.) Ancestry Furniture has three sales representatives: Albert, Buck, and Candy. Albert sold 60 tables with 6 chairs each. Buck sold 100 tables with 8 chairs each. Candy sold 110 tables with 4 chairs each. Read the requirements.

PLEASE HELP FAST AND ALL IN ACCOUNTING. I WILL RATE 5 STARS.

Answer 1

1	sales representative;		Tables sold	Chairs per table	Total chairs sold
			a	b	a*b
	Albert		60	6	360
	Buck		100	8	800
	Candy		110	4	440
	Contribution margin=Net sales revenue-Variable costs
	Sales representative;			Albert	Buck	Candy
	Net sales revenue		a	90000	170000	143000
				(60*900)+(360*100)	(100*900)+(800*100)	(110*900)+(440*100)
	Variable costs;
	Variable manufacturing costs			47700	85300	81070
				(60*621)+(360*29)	(100*621+800*29)	(110*621+440*29)
	Sales commission at 6%
	(Net sales revenue*6%)			5400	10200	8580
	Total variable costs		b	53100	95500	89650
	Contribution margin			36900	74500	53350
	Contribution margin ratio=Contribution margin/Net sales revenue
				Contribution margin ratio
	Albert	36900/90000		41.00%
	Buck	74500/170000		43.82%
	Candy	53350/143000		37.31%
2	Buck	is the sales representative with the highest contribution margin ratio because this representative
		Sold the most chairs which have the higher contribution margin as compared to tables
	Contribution margin ratio:
	Tables	(900-621)/900=279/900=0.31=31%
	Chairs	(100-29)/100=71/100=71%