Verge,IncHas Two Products-Le Cadre and La Bougie Verge Has Two Sales Representatives-Rosemary Wilson and Maria Blanco

question 111

Multiple Choice

Verge,Inc.has two products-Le Cadre and La Bougie.Financial data for both the products follow: $$\begin{array} { | l | r | r | } \hline & \text { Le Cadre } & \text { La Bougie } \\\hline \text { Units sold } & 2200 \text { units } & 600 \text { units } \\\hline \text { Sales price per unit } & \$ 500 & \$ 1200 \\\hline \text { Variable manufacturing cost per unit } & 320 & 750 \\\hline \text { Sales commission (\% of sales) } & 7 \% & 4 \% \\\hline\end{array}$$ Verge has two sales representatives-Rosemary Wilson and Maria Blanco.Each representative sold a total of 1400 units during the month of March.Rosemary had a sales mix of 60% Le Cadre and 40% La Bougie.Maria had a sales mix of 80% Le Cadre and 20% La Bougie.Based on the above information,calculate Rosemary's total contribution to company profits.

• A)$403,200
• B)$121,800
• C)$346,920
• D)$225,120

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Definitions:

Diffusion of Innovation

The process by which a new idea, product, or practice spreads within a society or from one society to another.

Consumers

People or entities buying products and services for their own personal consumption or use.

Marketers

Experts engaged in the tasks related to the marketing, selling, and distribution of a product or service.

Diffusion of Innovation Curve

A model that illustrates the process by which a new product or concept is adopted by the market, from early adopters to the late majority and laggards.