Question: Periphery, Inc. has two productspicture frames and candle holders. Financial data for both the products follow: Picture Frames Candle Holders Units sold 2,500 units 1,200

Periphery, Inc. has two

productspicture

frames and candle holders. Financial data for both the products follow:

Picture Frames Candle Holders
Units sold 2,500 units 1,200 units
Sales price per unit $500 $1,300
Variable manufacturing cost per unit 300 700
Sales commission (% of sales) 6% 5%

Periphery has two sales

representativesAndrew

Novak and Liu Wei. Each sales representative sold a total of

1,850

units during the month of March. Andrew had a sales mix of

80%

picture frames and

20%

candle holders. Liu 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?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!