Edge Inc.had two products-Le Chaud and Le Frais.Financial data for both the products follow:
It had two sale executives-Jack Lynch and Peter Cho.Each of them sold a total of 1,500 units during the month of March,2015.Jack had a sales mix of 70% Le Chaud and 30% Le Frais.Peter had a sales mix of 60% Le Chaud and 40% Le Frais.Based on the above information,calculate Peter's total contribution to company profits?

Question

Edge Inc.had two products-Le Chaud and Le Frais.Financial data for both the products follow:
  It had two sale executives-Jack Lynch and Peter Cho.Each of them sold a total of 1,500 units during the month of March,2015.Jack had a sales mix of 70% Le Chaud and 30% Le Frais.Peter had a sales mix of 60% Le Chaud and 40% Le Frais.Based on the above information,calculate Peter's total contribution to company profits?

Quizplus · Accepted Answer

11ea84d1_1177_8cd0_83dc_d36d086e78b5_TB3006_00 Sale Revenue
(900 units × $500 per unit)
 11ea84d1_1177_8cd1_83dc_7f6ec5c159a0_TB3006_00 11ea84d1_1177_b3e2_83dc_217b291b8164_TB3006_00 Variable costs:
Variable manufacturing costs
 11ea84d1_1177_b3e3_83dc_5125450e3294_TB3006_00 Sale commission
 11ea84d1_1177_b3e4_83dc_49f23cfb6c1b_TB3006_00 Total contribution by Peter = $130,500 + $120,000 = $250,500

Edge IncHad Two Products-Le Chaud and Le Frais