Sunrise Breakfast Foods, Inc. has two products-waffles and toaster pastries. Financial data for both the products follows:
$$\begin{array} { | l | r | r | }
\hline & \text { Waffles } & \text { Pastries } \
\hline \text { Sales price per unit } & \$ 500 & \$ 1,000 \
\hline \text { Variable manufacturing cost per unit } & 320 & 750 \
\hline \text { Sales commission (\% of sales) } & 7 \% & 5 \% \
\hline
\end{array}$$ 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:
 $$\begin{array} { | l | r | r | } 
\hline & \text { Waffles } & \text { Pastries } \
\hline \text { Sales price per unit } & \$ 500 & \$ 1,000 \
\hline \text { Variable manufacturing cost per unit } & 320 & 750 \
\hline \text { Sales commission (\% of sales) } & 7 \% & 5 \% \
\hline
\end{array}$$ 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:
 $$\begin{array} { | l | r | r | } 
\hline & \text { Waffles } & \text { Pastries } \
\hline \text { Sales price per unit } & \$ 500 & \$ 1,000 \
\hline \text { Variable manufacturing cost per unit } & 320 & 750 \
\hline \text { Sales commission (\% of sales) } & 7 \% & 5 \% \
\hline
\end{array}$$ 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