**Sales Territory and Salesperson Profitability Analysis**Havasu Off-Road Inc. manufactures and sells a variety of commercial vehicles in the Northeast and Southwest regions. There are two salespersons assigned to each territory. Higher commission rates go to the most experienced salespersons. The following sales statistics are available for each salesperson:| | Northeast | | Southwest | ||----------------|------------------|----------|-----------------|----------|| | Rene | Steve | Colleen | Paul || **Average per unit:** | | | | || Sales price | $15,500 | $16,000 | $14,000 | $18,000 || Variable cost of goods sold | $9,300 | $8,000 | $8,400 | $9,000 || Commission rate| 10% | 5% | 10% | 5% || Units sold | 60 | 100 | 40 | 90 || Manufacturing margin ratio | 40% | 50% | 40% | 50% |a. 1. Prepare a **contribution margin** by salesperson report. Compute the contribution margin ratio for each salesperson.

Profitability Analysis:This helps in analyzing the profitability of the output produced by the…

Sales Territory and Salesperson Profitability Analysis Havasu Off-Road Inc. manufactures and sells a variety of commercial vehicles in the Northeast and Southwest regions. There are two salespersons assigned to each territory. Higher commission rates go to the most experienced salespersons. The following sales statistics are available for each salesperson: Average per unit Sales price Variable cost of goods sold Commission rate Manufacturing margin ratio Northeast Southwest Rene Steve Colleen Paul $15.500 $16,000 $14,000 $18,000 19,300 $8,000 $8,400 $9,000 10% n 36 a. 1. Prepare a contribution margin by salesperson report. Compute the contribution margin ratio for each salesperson.

Sales Territory and Salesperson Profitability Analysis Havasu Off-Road Inc. manufactures and sells a variety of commercial vehicles in the Northeast and Southwest regions. There are two salespersons assigned to each territory. Higher commission rates go to the most experienced salespersons. The following sales statistics are available for each salesperson: Average per unit Sales price Variable cost of goods sold Commission rate Manufacturing margin ratio Northeast Southwest Rene Steve Colleen Paul $15.500 $16,000 $14,000 $18,000 19,300 $8,000 $8,400 $9,000 10% n 36 a. 1. Prepare a contribution margin by salesperson report. Compute the contribution margin ratio for each salesperson.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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