Periphery,Inc Periphery Has Two Sales Representatives-Andrew Novak and Liu Wei

question 22

Multiple Choice

Periphery,Inc.has two products-picture frames and candle holders.Financial data for both the products follow: $$\begin{array} { | l | r | r | } \hline & \begin{array} { r } \text { Picture } \\\text { Frames }\end{array} & \begin{array} { r } \text { Candle } \\\text { Holders }\end{array} \\\hline \text { Units sold } & 2100 \text { units } & 700 \text { units } \\\hline \text { Sales price per unit } & \$ 700 & \$ 1200 \\\hline \text { Variable manufacturing cost per unit } & 300 & 650 \\\hline \text { Sales commission (\% of sales) } & 5 \% & 3 \% \\\hline\end{array}$$ Periphery has two sales representatives-Andrew Novak and Liu Wei.Each sales representative sold a total of 1400 units during the month of March.Andrew had a sales mix of 70% picture frames and 30% candle holders.Liu had a sales mix of 80% picture frames and 20% candle holders.What is the contribution margin ratio for picture frames and candle holders,respectively?

• A)57%; 46%
• B)52%; 43%
• C)5%; 3%
• D)43%; 54%

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Definitions:

Negligence

A failure to take reasonable care or to act with the expected level of diligence, leading to harm or damage.

Limited Partnership

A business structure where one or more partners have limited liability, and at least one partner has unlimited liability.

Day-to-Day Business Management

The continuous, routine operations and activities involved in the administration and control of a company or organization.

Architectural Firm

A business entity specializing in providing services related to the design, planning, and oversight of building construction or landscape projects.