Pathways Careers, Inc has two products Rosume Reader and Cover Letter Cure Finan
ID: 2508858 • Letter: P
Question
Pathways Careers, Inc has two products Rosume Reader and Cover Letter Cure Financial data for both the productsfollow Resume Cover Leter Reader Cure 2,100 units 70D units $800 $1,200 750 Unilts sold Sales price pes unit sales commission (% of sales) Pathways has two sales representatives cost per unt 310 ans Mier and wllow Brown Each sales representate sold a total of 1,400 uras during the more of March Cah had a ties mix of a0% Res e Reader 20% Cave Lete Carr M?ow had a sales mix of 60% Resume Reader and 40% Cover Leter Cure Based onthe above information. Calculate whow's total contibution to company prom O A. $208,320 ? B. S225, 120 OC. $433 440 O D. $495,600 Cick to select your aswer 8 5 6 G HJKLExplanation / Answer
Contribution margin per unit = Selling price per unit - Variable manufacturing cost per unit - Sales comission per unit
Contribution margin per unit for Resume Reader = 600 - 310 - 42(600*7%) = 248
Contribution margin per unit for Cover Letter Cure = 1,200 - 750 - 48(1,200*4%) = 402
Willow sales mix = 60% Resume Reader, 40% Cover Letter Cure
Willow's total contribution to company profits = (1,400 * 60% * 248) + (1,400 * 40% * 402)
= 208,320 + 225,120
= 433,440