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

Question 110

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%

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