UESTION 10 Career Hunter, Inc. has two products—Resume Reader and Cover Letter C
ID: 2496621 • Letter: U
Question
UESTION 10
Career Hunter, Inc. has two products—Resume Reader and Cover Letter Cure. Financial data for both the products follow:
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.
Resume Reader Cover Letter Cure Units sold 2,100 units 600 units Sales price per unit $600 $1,200 Variable manufacturing cost per unit 310 650 Sales commission (% of sales) 6% 3%Explanation / Answer
Sales Price Resume reader = 2100 units *70%/150% = 980 units * 600 = $ 588000
Sales Price Cover letter = 600 units * 30%/50% = 360 units * 1200 = $ 432000
Total Sale Price = $ 1020000
Less: Variable manufacturing cost (980 units*310+360 units *650) = $ 537800
Total Contribution $ 482200
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.