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Category > Management Posted 07 Dec 2017 My Price 7.00

Jellnick Equipment Inc.

Margin analysis

 

Jellnick Equipment Inc. manufactures and sells kitchen cooking products throughout the state. The company employs four salespersons. The following contribution margin by salesperson  analysis  was prepared:

Jellnick Equipment Inc.

Contribution Margin Analysis by Salesperson

 

 

Danica

 

Kyle

 

Richard

 

Tom

Sales  ..................................

$165,000

 

$187,000

 

$176,000

 

$ 132,000

Variable cost of goods sold .............

     57,750

 

     93,500

 

     88,000

 

     66,000

Manufacturing margin   .................

$107,250

 

$  93,500

 

$ 88,000

 

$ 66,000

Variable selling expenses :

 

 

 

 

 

 

 

Commissions ........................

$    6,600

 

$    7,480

 

$    7,040

 

$    5,280

Promotion expenses .................

     47,850

 

     44,880

 

    42,240

 

     31,680

Total variable selling expenses .....

$  54,450

 

$  52,360

 

$  49,280

 

$  36,960

Contribution margin  ...................

$  52,800

 

$  41,140

 

$  38,720

 

$  29,040

1.     Calculate the manufacturing margin as a percent of sales and the contribution margin ratio for each salesperson.

2.                                  Explain the results of the analysis.

 

 

 

Answers

Maurice Tutor
(5)
Status NEW Posted 07 Dec 2017 08:12 PM My Price 7.00

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