Sibling Furniture Company manufactures and sells oak tables and chairs. Price and cost data for the furniture follow: Furniture has three sales representatives: Archie, Bryce, and Crissy. Archie sold 70 tables with 8 chairs each. Bryce sold 50 tables with 4 chairs each. Crissy sold 80 tables with 6 chairs each.
Requirement
Calculate the total contribution margin and the contribution margin ratio for each sales representative (round to two decimal places) Before calculating the total contribution margin, begin by identifying and calculating the total number of tables and chairs sold by each sales representative for the period.
Sales representative Tables sold Chairs per table Total chairs sold
Archie
Bryce
Cory

                            contribution margin        CMR (%)

Archie                      $51,100                         39.9%

Bryce                       $26,500                       20.7%

Cory                        $50,400                       39.4%

Total                      $128,000                        100%

Explanation:

sales price per table $1,100

variable production costs $715

sales commissions $55

contribution margin per table $330

sales price per chair $100

variable production costs $45

sales commissions $5

contribution margin per chair $50

Archie sold 70 tables and 560 chairs, total contribution margin:

tables ⇒ 70 x $330 = $23,100

chairs ⇒ 560 x $50 = $28,000

total = $51,100

Bryce  sold 50 tables and 200 chairs, total contribution margin:

tables ⇒ 50 x $330 = $16,500

chairs ⇒ 200 x $50 = $10,000

total = $26,500

Cory sold 80 tables and 480 chairs, total contribution margin:

tables ⇒ 80 x $330 = $26,400

chairs ⇒ 480 x $50 = $24,000

total = $50,400

                            contribution margin        %

Archie                      $51,100                       39.9%

Bryce                       $26,500                     20.7%

Cory                        $50,400                     39.4%

Total                      $128,000                      100%