Edge,IncHas Two Products-Le Chaud and Le Frais Edge Has Two Sales Representatives-Mary Baker and Jocelyn Rice

question 57

Multiple Choice

Edge,Inc.has two products-Le Chaud and Le Frais.Financial data for both the products follows: $\begin{array}{|l|r|r|} \hline& \text { Le Chaud } & \text { Le Frais } \\\hline \text { Units sold } & 2,100 \text { units } & 700 \text { units } \\\hline \text { Sales price per unit } & \$ 700 & \$ 1,100 \\\hline \text { Variable manufacturing cost per unit } & 320 & 700 \\\hline \text { Sales commission ( } \% \text { of sales) } & 6 \% & 5 \% \\\hline\end{array}$ Edge has two sales representatives-Mary Baker and Jocelyn Rice.Each representative sold a total of 1,400 units during the month of March.Mary had a sales mix of 60% Le Chaud and 40% Le Frais.Jocelyn had a sales mix of 70% Le Chaud and 30% Le Frais.Based on the above information,calculate Mary's total contribution to company profits.

• A)$543,200
• B)$283,920
• C)$477,120
• D)$193,200

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Definitions:

Leasehold Improvements

Leasehold improvements refer to alterations made to rental premises in order to customize it for the needs of a tenant.

Future Use

Anticipated use or application of something in the upcoming period.

Lump-Sum Price

A single price that encompasses all components of a purchase rather than pricing each component individually.

Bankrupt Company

A company that has been declared legally insolvent and unable to pay its debts, leading to legal proceedings for asset liquidation or restructuring.