Please need answer the following requirements a and b on these financial accounting question Evermount Woodworks manufactures and sells walnut desks and officechairs. Price and cost data for the furniture are as follows:Sales PriceDesks Chairs$950 $120Variable Manufacturing Costs $540 $40Sales Commission (5%)$47.50 $6.001. Calculate the total contribution margin per unit for both desks andchairs.2. Calculate the contribution margin ratio for each item.

Step 1: Define Contribution MarginThe Contribution Margin is the difference between Sales Revenue…

Answered: Evermount Woodworks manufactures and…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 16E

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Bright Force Inc. produces and sells lighting fixtures. An entry light has a total cost of $90 per unit, of which $50 is product cost and $40 is selling and administrative expenses. In addition, the total cost of $90 is made up of $55 variable cost and $35 fixed cost. The desired profit is $20 per unit. Determine the markup percentage on product cost. Round the answer to nearest whole number.
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