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Verge,IncHas Two Products-Le Cadre and La Bougie Verge Has Two Sales Representatives-Rosemary Wilson and Maria Blanco

Question 105

Multiple Choice

Verge,Inc.has two products-Le Cadre and La Bougie.Financial data for both the products follow:  Le Cadre  La Bougie  Units sold 2200 units 600 units  Sales price per unit $500$1200 Variable manufacturing cost per unit 320750 Sales commission (% of sales)  7%4%\begin{array} { | l | r | r | } \hline & \text { Le Cadre } & \text { La Bougie } \\\hline \text { Units sold } & 2200 \text { units } & 600 \text { units } \\\hline \text { Sales price per unit } & \$ 500 & \$ 1200 \\\hline \text { Variable manufacturing cost per unit } & 320 & 750 \\\hline \text { Sales commission (\% of sales) } & 7 \% & 4 \% \\\hline\end{array} Verge has two sales representatives-Rosemary Wilson and Maria Blanco.Each representative sold a total of 1400 units during the month of March.Rosemary had a sales mix of 60% Le Cadre and 40% La Bougie.Maria had a sales mix of 80% Le Cadre and 20% La Bougie.Based on the above information,calculate Rosemary's total contribution to company profits.


A) $403,200
B) $121,800
C) $346,920
D) $225,120

Correct Answer:

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