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Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
6th Edition
ISBN: 9780134486857
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 21, Problem 29AP
Relative Furniture Company manufactures and sells oak tables and chairs. Price and cost data for the furniture follow:
Relative Furniture has three sales representatives: Abe, Brett, and Corrin. Abe sold 50 tables with 4 chairs each. Brett sold 110 tables with 6 chairs each. Corrin sold 90 tables with 8 chairs each.
Requirements
- 1. Calculate the total contribution margin and the contribution margin ratio for each sales representative (round to two decimal places).
- 2. Which sales representative has the highest contribution margin ratio? Explain why.
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Students have asked these similar questions
Analyzing profitability
Relative Furniture Company manufactures and sells oak tables and chairs. Price and cost data for the furniture follow:
Relative Furniture has three sales representatives: Abe, Brett, and Corrin. Abe sold 50 tables With 4 Chairs each. Brett sold 110 tables With 6 chairs each. Corrin sold 90 tables with 8 chairs each.
Requirements
Calculate the total contribution margin and the contribution margin ratio for each sales representative (round to two decimal places).
Which sales representative has the highest contribution margin ratio? Explain why.
Analyzing profitability
Father Furniture Company manufactures and sells oak tables and chairs. Price and cost data for the furniture follow:
Father Furniture has three sales representatives: Adam, Ben, and Caleb. Adam sold 100 tables With 6 chairs each. Ben sold 110 tables With 4 chairs each. Caleb sold 80 tables with 8 chairs each.
Requirements
Calculate the total contribution margin and the contribution margin ratio for each sales representative (round to two decimal places).
Which sales representative has the highest contribution margin ratio? Explain Why
K
Clan 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.)
Clan Furniture has three sales representatives: Alfred, Bob, and Cait. Alfred sold 60 tables with 8 chairs each. Bob sold 70 tables with 6 chairs each. Cait
sold 100 tables with 4 chairs each.
Read the requirements.
Sales representative:
Alfred
Bob
Cait
Net sales revenue
$
66,000 $
70,000 $
90,000
47,700
Variable costs
Contribution margin
52,150
69,500
$
18,300 $
17,850 $
20,500
Now calculate the contribution margin ratio for each sales representative. (Round to two decimal places-the nearest hundredth percent-X.XX%.)
Contribution margin
÷
Net sales revenue = Contribution margin ratio
Alfred
$
18,300
"
÷
66,000 =
27.73
%
Bob
$
17,850 ÷ $
70,000
=
25.50 %
20,500 +
$
90,000
=
22.78
%
Cait
$
Requirement 2. Which sales representative has the highest contribution margin ratio? Explain why.
is the sales representative with the…
Chapter 21 Solutions
Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
Ch. 21 - Pierce Company had the following costs: Calculate...Ch. 21 - Hayden Company has 50 units in Finished Goods...Ch. 21 - The Stark Company manufactures a product that is...Ch. 21 - Chaney Company provides lawn care services....Ch. 21 - Prob. 1QCCh. 21 - Prob. 2QCCh. 21 - Donovan Company incurred the following costs while...Ch. 21 - Donovan Company incurred the following costs while...Ch. 21 - Donovan Company incurred the following costs while...Ch. 21 - Donovan Company incurred the following costs while...
Ch. 21 - Donovan Company incurred the following costs while...Ch. 21 - Prob. 8QCCh. 21 - Prob. 9QCCh. 21 - Prob. 10QCCh. 21 - What is absorption costing?Ch. 21 - What is variable costing?Ch. 21 - How are absorption costing and variable costing...Ch. 21 - Prob. 4RQCh. 21 - Prob. 5RQCh. 21 - When units produced are less than units sold, how...Ch. 21 - Explain why the fixed manufacturing overhead cost...Ch. 21 - Prob. 8RQCh. 21 - Prob. 9RQCh. 21 - Prob. 10RQCh. 21 - Why is it appropriate to use variable costing when...Ch. 21 - Prob. 12RQCh. 21 - Prob. 13RQCh. 21 - Prob. 14RQCh. 21 - Prob. 15RQCh. 21 - How can variable costing be used in service...Ch. 21 - Classify each cost by placing an X in the...Ch. 21 - Martin Company had the following costs: Calculate...Ch. 21 - Martin Company had the following costs: Calculate...Ch. 21 - Dracut Company reports the following information...Ch. 21 - Dracut Company reports the following information...Ch. 21 - Adamson, Inc. has the following cost data for...Ch. 21 - Refer to your answers to Short Exercise S21-6....Ch. 21 - Refer to your answers to Short Exercise S21-6....Ch. 21 - Prob. 9SECh. 21 - Prob. 10SECh. 21 - Prob. 11SECh. 21 - Prob. 12SECh. 21 - Meyer Company reports the following information...Ch. 21 - Concord, Inc. has collected the following data for...Ch. 21 - Concord, Inc. has collected the following data for...Ch. 21 - ReVitalAde produced 13,000 cases of powdered drink...Ch. 21 - Refer to Exercise E21-16. Requirements 1. Prepare...Ch. 21 - Prob. 18ECh. 21 - Refer to your answers to Exercise E21-16. In May...Ch. 21 - Refer to Exercise E21-19. Requirements 1. Prepare...Ch. 21 - The Sweet Treats Company manufactures candy that...Ch. 21 - Sampler Company sells two products, Sigma and...Ch. 21 - Prob. 23ECh. 21 - Prob. 24ECh. 21 - Sherman Company provides carpet cleaning services...Ch. 21 - Prob. 26ECh. 21 - Prob. 27APCh. 21 - Prob. 28APCh. 21 - Relative Furniture Company manufactures and sells...Ch. 21 - Prob. 30APCh. 21 - Professional Pool Cleaning Service provides pool...Ch. 21 - Prob. 32BPCh. 21 - Game Source manufactures video games that it sells...Ch. 21 - Prob. 34BPCh. 21 - The 2018 data that follow pertain to Elis Electric...Ch. 21 - Divine Pool Cleaning Service provides pool...Ch. 21 - Prob. 37PCh. 21 - This problem continues the Piedmont Computer...Ch. 21 - CF Industries Holdings, Inc. is one of the largest...Ch. 21 - The Hurley Hat Company manufactures baseball hats....Ch. 21 - Sampson Company operates a manufacturing facility...Ch. 21 - In 100 words or fewer, explain the main...
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