Brooklyn Woodworks Ltd. manufactures and sells walnut dining tables and wooden stools. The price and cost data for the furniture are as follows: Product Dining Tables Wooden Stools Sales Price $1,500 $120 Variable Manufacturing Costs $950 $45 Sales Commission (8%) $120 $9 1. Calculate the total contribution margin and the contribution margin ratio for each product. 2. Which product has the higher contribution margin ratio? Explain why.

Brooklyn Woodworks Ltd. manufactures and sells walnut dining tables and wooden stools. The price and cost data for the furniture are as follows: Product Dining Tables Wooden Stools Sales Price $1,500 $120 Variable Manufacturing Costs $950 $45 Sales Commission (8%) $120 $9 1. Calculate the total contribution margin and the contribution margin ratio for each product. 2. Which product has the higher 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 19MC: A company sells two products, Model 101 and Model 202. For every one unit of Model 101, they sell...

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