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Edge,IncHas Two Products-Le Chaud and Le Frais Edge Has Two Sales Representatives-Mary Baker and Jocelyn Rice

Question 103

Multiple Choice

Edge,Inc.has two products-Le Chaud and Le Frais.Financial data for both the products follows:  Le Chaud  Le Frais  Units sold 2,100 units 700 units  Sales price per unit $700$1,100 Variable manufacturing cost per unit 320700 Sales commission ( % of sales)  6%5%\begin{array}{|l|r|r|} \hline& \text { Le Chaud } & \text { Le Frais } \\\hline \text { Units sold } & 2,100 \text { units } & 700 \text { units } \\\hline \text { Sales price per unit } & \$ 700 & \$ 1,100 \\\hline \text { Variable manufacturing cost per unit } & 320 & 700 \\\hline \text { Sales commission ( } \% \text { of sales) } & 6 \% & 5 \% \\\hline\end{array} Edge has two sales representatives-Mary Baker and Jocelyn Rice.Each representative sold a total of 1,400 units during the month of March.Mary had a sales mix of 60% Le Chaud and 40% Le Frais.Jocelyn had a sales mix of 70% Le Chaud and 30% Le Frais.Based on the above information,calculate Mary's total contribution to company profits.


A) $543,200
B) $283,920
C) $477,120
D) $193,200

Correct Answer:

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