alespersons' Report and Analysis Walthman Industries Inc. employs seven salespersons to sell and distribute its product throughout the state. Data taken from reports received from the salespersons during the year ended December 31 are as follows: Salesperson Total Sales Variable Cost of Goods Sold Variable Selling Expenses Case $424,000 $233,200 $80,560 Dix 371,000 178,080 63,070 Johnson 469,000 262,640 75,040 LaFave 586,000 334,020 111,340 Orcas 538,000 199,060 91,460 Sussman 529,000 185,150 116,380 Willbond 569,000 216,220 91,040 Required: 1. Prepare a table indicating contribution margin, variable cost of goods sold as a percent of sales, variable selling expenses as a percent of sales, and contribution margin ratio by salesperson. Round percents to the nearest whole number. Enter all amounts as positive numbers. Waltham Industries Inc.Salespersons' AnalysisFor the Year Ended December 31 Salesperson Contribution Margin Variable Cost of Goods Sold as a Percent of Sales Variable Selling Expenses as a Percent of Sales Contribution Margin Ratio Case $ % % % Dix $ % % % Johnson $ % % % LaFave $ % % % Orcas $ % % % Sussman $ % % % Willbond $ % % % 2. Which salesperson generated the highest contribution margin ratio for the year? 3. Identify the factors other than contribution margin that should be considered in evaluating the performance of salespersons. Rate of growth in sales for the current year compared with past years Years of experience for salespersons Size of sales territory Actual sales compared with budgeted sales All of the above
Salespersons' Report and Analysis
Walthman Industries Inc. employs seven salespersons to sell and distribute its product throughout the state. Data taken from reports received from the salespersons during the year ended December 31 are as follows:
Salesperson | Total Sales | Variable Cost of Goods Sold | Variable Selling Expenses | |||||
Case | $424,000 | $233,200 | $80,560 | |||||
Dix | 371,000 | 178,080 | 63,070 | |||||
Johnson | 469,000 | 262,640 | 75,040 | |||||
LaFave | 586,000 | 334,020 | 111,340 | |||||
Orcas | 538,000 | 199,060 | 91,460 | |||||
Sussman | 529,000 | 185,150 | 116,380 | |||||
Willbond | 569,000 | 216,220 | 91,040 |
Required:
1. Prepare a table indicating contribution margin, variable cost of goods sold as a percent of sales, variable selling expenses as a percent of sales, and contribution margin ratio by salesperson. Round percents to the nearest whole number. Enter all amounts as positive numbers.
Salesperson | Contribution Margin | Variable Cost of Goods Sold as a Percent of Sales |
Variable Selling Expenses as a Percent of Sales |
Contribution Margin Ratio |
Case | $ | % | % | % |
Dix | $ | % | % | % |
Johnson | $ | % | % | % |
LaFave | $ | % | % | % |
Orcas | $ | % | % | % |
Sussman | $ | % | % | % |
Willbond | $ | % | % | % |
2. Which salesperson generated the highest contribution margin ratio for the year?
3. Identify the factors other than contribution margin that should be considered in evaluating the performance of salespersons.
- Rate of growth in sales for the current year compared with past years
- Years of experience for salespersons
- Size of sales territory
- Actual sales compared with budgeted sales
- All of the above
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