Requirement 2. Which sales representative has the highest contribution margin ratio? Explain why ________ is the sales representative with the highest contribution margin ratio because this representative _________________

Requirement 2. Which sales representative has the highest contribution margin ratio? Explain why is the sales representative with the highest contribution margin ratio because this representative _________

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Requirement 2. Which sales representative has the highest contribution margin ratio? Explain why

________ is the sales representative with the highest contribution margin ratio because this representative _________________

Now calculate the contribution margin ratio for each sales representative. (Round to two decimal places-
Contribution margin
Net sales revenue
Contribution margin ratio
had the highest level of variable costs.
Archie
%2.
63,720
167,400
38.06
had the highest sales revenue for the period.
Buck
2.
59,600
172,000
34.65
had the lowest level of fixed costs.
Cory
53,240
173 800
30.63
sold the most chairs, which have the higher contribution margin as compared to tables.
sold the most tables, which have the higher contribution margin as compared to chairs.
Requirement 2. Which sales representative has the highest contribution margin ratio? Explain why.
is the sales representative with the highest contribution margin ratio because this representative
Click to select your answer(s) and then click Check Answer
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Read the requirements.
103,680
112,400
120,560
Variable costs
Contribution margin
63,720 $
59,600 S
53,240
Now calculate the contribution margin ratio for each sales representative. (Round to two de
Contribution margin
Net sales revenue
Contributionn
%24
63 720
167,400 3D
59,600
172,000
Cory
53,240
173,800
Buck
Archie
Which sales representative has the highest contribution margin ratio? Exp
is the sales representative with the highest contribution margin ratio because this
Click to select your answer(s) and then click Check Answer,
All parts showing
%24
%24
%24
%24
%24
%24

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