Sunrise Breakfast Foods,Inc.has two products-waffles and toaster pastries.Financial data for both the products follows:
$$\begin{array} { | l | r | r | }
\hline & \text { Waffles } & \text { Pastries } \
\hline \text { Sales price per unit } & \$ 500 & \$ 1,000 \
\hline \text { Variable manufacturing cost per unit } & 320 & 750 \
\hline \text { Sales commission } ( \% \text { of sales } ) & 7 \% & 5 \% \
\hline
\end{array}$$ Sunrise has two sales representatives-Iolana and Sachi.Each sales representative sold a total of 1,500 units during the month of March.Iolana had a sales mix of 70% waffles and 30% pastries.Sachi had a sales mix of 60% waffles and 40% pastries.Which sales representative has the highest contribution ratio? Explain the reason for your answer.
(Round your percent answers to two decimal places.)

Question

Sunrise Breakfast Foods,Inc.has two products-waffles and toaster pastries.Financial data for both the products follows:
 $$\begin{array} { | l | r | r | } 
\hline & \text { Waffles } & \text { Pastries } \
\hline \text { Sales price per unit } & \$ 500 & \$ 1,000 \
\hline \text { Variable manufacturing cost per unit } & 320 & 750 \
\hline \text { Sales commission } ( \% \text { of sales } ) & 7 \% & 5 \% \
\hline
\end{array}$$ Sunrise has two sales representatives-Iolana and Sachi.Each sales representative sold a total of 1,500 units during the month of March.Iolana had a sales mix of 70% waffles and 30% pastries.Sachi had a sales mix of 60% waffles and 40% pastries.Which sales representative has the highest contribution ratio? Explain the reason for your answer.
(Round your percent answers to two decimal places.)

Quizplus · Accepted Answer

The Answer of Sunrise Breakfast Foods,Inc.has two products-waffles and toaster pastries.Financial data for both the products follows:
 $$\begin{array} { | l | r | r | } 
\hline & \text { Waffles } & \text { Pastries } \
\hline \text { Sales price per unit } & \$ 500 & \$ 1,000 \
\hline \text { Variable manufacturing cost per unit } & 320 & 750 \
\hline \text { Sales commission } ( \% \text { of sales } ) & 7 \% & 5 \% \
\hline
\end{array}$$ Sunrise has two sales representatives-Iolana and Sachi.Each sales representative sold a total of 1,500 units during the month of March.Iolana had a sales mix of 70% waffles and 30% pastries.Sachi had a sales mix of 60% waffles and 40% pastries.Which sales representative has the highest contribution ratio? Explain the reason for your answer.
(Round your percent answers to two decimal places.)

Sunrise Breakfast Foods,Inc Sunrise Has Two Sales Representatives-Iolana and Sachi