Margin,Inc Margin Has Two Sales Representatives-Jack Lynch and Peter Cho

question 110

Multiple Choice

Margin,Inc.has two products-picture frames and candle holders.Financial data for both the products follows: $\begin{array}{|l|r|r|} \hline& \begin{array}{r}\text { Picture } \\\text { Frames }\end{array} & \begin{array}{r}\text { Candle } \\\text { Holders }\end{array} \\\hline \text { Units sold } & 2,100 \text { units } & 700 \text { units } \\\hline \text { Sales price per unit } & \$ 700 & \$ 1,000 \\\hline \text { Variable manufacturing cost per unit } & 310 & 650 \\\hline \text { Sales commission }(\% \text { of sales) } & 7 \% & 4 \% \\\hline\end{array}$ Margin has two sales representatives-Jack Lynch and Peter Cho.Each sales representative sold a total of 1,400 units during the month of March.Jack had a sales mix of 80% picture frames and 20% candle holders.Peter had a sales mix of 70% picture frames and 30% candle holders.What is the contribution margin ratio for picture frames and candle holders,respectively?

• A)56%; 35%
• B)49%; 31%
• C)7%; 4%
• D)44%; 65%

---

Definitions:

Direct Dealing

The negotiation process between employers and employees (or their representatives) without the involvement of third-party mediators or arbitrators.

Surface Bargaining

A term used in labor relations, referring to the practice of negotiating a contract without the intention of reaching a meaningful agreement.

Unilateral Change

Actions taken by one party, especially by an employer regarding work conditions, without agreement from the other party, such as employees or unions.

BATNA

Best Alternative to a Negotiated Agreement; the most advantageous alternative course of action a party can take if negotiations fail and an agreement cannot be reached.