Question

Family 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) Family Furniture has three sales representatives: Avery, Buck, and Casey. Avery sold 100 tables with 6 chales each Buck sold 110 tables with 4 chairs each. Casey sold 80 tables with chaiseach Read the requirements Before calculating the total contribution margin, begin by identifying and calculating the total number of tables and chairs sold by each sales representative for the period. Sales representative Tables sold Chairs per table Total chairs sold © Data Table - X Avery 100 6 600 Buck 110 440 640 80 Casey Tables Chairs Calculate the total contribution margin for each sales representative Sales Price $ 900 5 540 Variable manufacturing costs Sales representative Buck 24 Avery 90460 Net sales revenue 99320 Sales commission (5%) 72640 54144 59490 43392 Variable costs 36336 39824 Contribution margin Print 29248 Done 4 80 Casey 45 4 Enter any number in the edit Delds and then click Check Answer

Answer 1

Sales representative	Avery	Buck	Casey
Net sales revenue	$138000	$134200	$123200
Variable costs	75300	76670	64720
Contribution margin	$62700	$57530	$58480

Calculation of Net sales revenue

Avery= (100*$900)+(600*$80)= $138000

Buck= (110*$900)+(440*$80)= $134200

Casey= (80*$900)+(640*$80)= $123200

Calculation of Variable manufacturing costs

Avery= (100*$540)+(600*$24)= $68400

Buck= (110*$540)+(440*$24)= $69960

Casey= (80*$540)+(640*$24)= $58560

Calculation of Sales commissions

Avery= (100*$45)+(600*$4)= $6900

Buck= (110*$45)+(440*$4)= $6710

Casey= (80*$45)+(640*$4)= $6160

Calculation of Variable costs

Variable costs= Variable manufacturing costs+Sales commissions

Avery= $68400+6900= $75300

Buck= $69960+6710= $76670

Casey= $58560+6160= $64720

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