Bon Jager Inc. manufactures and sells devices used in cardiovascular surgery. The company has two salespersons, Dean

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Bon Jager Inc. manufactures and sells devices used in cardiovascular surgery. The company has two salespersons, Dean and Martin.
A contribution margin by salesperson report was prepared as follows:

Interpret the report, and provide recommendations to the two sales persons for improvingprofitability.

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Financial And Managerial Accounting

ISBN: 9781337119207

14th Edition

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

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Question Posted: Jun 27, 2014 02:53 AM

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Bon Jager Inc. manufactures and sells devices used in cardiovascular surgery. The company has two salespersons, Dean

Question:

Bon Jager Inc. Contribution Margin by Salesperson Dean Martin Sales $400,000 480000 264000 216,000 43,200 67 200 110400 56,000 128,000 88,000 Contribution margin Manufacturing margin as a percent of sales (manufacturing margin ratio) . Contribution margin ratio 105,600 54% 22% 45% 2296

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Martin is earning more contribution margin than Dean however both salespersons are earning the same ...View the full answer

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