Career Hunter,Inc.has two products-Resume Reader and Cover Letter Cure.Financial data for both the products follow: $\begin{array}{|l|r|r|}
\hline& \begin{array}{r}
\text { Resume } \
\text { Reader }
\end{array} & \begin{array}{r}
\text { Cover Letter } \
\text { Cure }
\end{array} \
\hline \text { Units sold } & 2,100 \text { units } & 600 \text { units } \
\hline \text { Sales price per unit } & \$ 600 & \$ 1,200 \
\hline \text { Variable manufacturing cost per unit } & 310 & 650 \
\hline \text { Sales commission }(\% \text { of sales) } & 6 \% & 3 \% \
\hline
\end{array}$ Career Hunter has two sales representatives-Steve Payne and Amanda Niles.Each sales representative sold a total of 1,350 units during the month of March.Steve had a sales mix of 80% Resume Reader and 20% Cover Letter Cure.Amanda had a sales mix of 70% Resume Reader and 30% Cover Letter Cure.Based on the above information,calculate Amanda's total contribution to company profits.

Question

Career Hunter,Inc.has two products-Resume Reader and Cover Letter Cure.Financial data for both the products follow: $\begin{array}{|l|r|r|} 
\hline& \begin{array}{r}
\text { Resume } \
\text { Reader }
\end{array} & \begin{array}{r}
\text { Cover Letter } \
\text { Cure }
\end{array} \
\hline \text { Units sold } & 2,100 \text { units } & 600 \text { units } \
\hline \text { Sales price per unit } & \$ 600 & \$ 1,200 \
\hline \text { Variable manufacturing cost per unit } & 310 & 650 \
\hline \text { Sales commission }(\% \text { of sales) } & 6 \% & 3 \% \
\hline
\end{array}$ Career Hunter has two sales representatives-Steve Payne and Amanda Niles.Each sales representative sold a total of 1,350 units during the month of March.Steve had a sales mix of 80% Resume Reader and 20% Cover Letter Cure.Amanda had a sales mix of 70% Resume Reader and 30% Cover Letter Cure.Based on the above information,calculate Amanda's total contribution to company profits.

Quizplus · Accepted Answer

Amanda's total sales = 1,350 unitsSales mix: 70% Resume Reader and 30% Cover Letter CureSo, Amanda sold 70% * 1,350 = 945 units of Resume Reader and 30% * 1,350 = 405 units of Cover Letter Cure.Contribution margin per unit of Resume Reader = Sales price per unit - Variable manufacturing cost per unit - Sales commission per unit= $600 - $310 - 6% * $600 = $222Contribution margin per unit of Cover Letter Cure = Sales price per unit - Variable manufacturing cost per unit - Sales commission per unit= $1,200 - $650 - 3% * $1,200 = $459Total contribution margin for Amanda = (Contribution margin per unit of Resume Reader * Number of units sold) + (Contribution margin per unit of Cover Letter Cure * Number of units sold)= ($222 * 945) + ($459 * 405)= $208,170 + $185,085= $393,255Therefore, Amanda's total contribution to company profits is $393,255.

Career Hunter,Inc Career Hunter Has Two Sales Representatives-Steve Payne and Amanda Niles