Salespersons' Report and Analysis Pachec 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 June 30 are as follows: Variable Total Variable Cost Selling of Goods Sold Salesperson Sales Expenses Asarenka $437,500 $196,875 $83,125 Crowell 91,200 570,000 228,000 Dempster 675,000 310,500 141,750 587,500 123,375 MacLean 246,750 Ortiz 525,000 126,000 215,250 Sullivan 587,500 246,750 99,875 Williams 575,000 253,000 115,000 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. Do Pachec Inc Salespersons' Analysis For the Year Ended June 30 Variable Cost of Goods Sold Variable Selling Expenses Contribution Margin as a Percent of Sales Contribution Margin Salesperson as a Percent of Sales Ratio % Asarenka % Crowell % % % Dempster MacLean % % Ortiz Sullivan % Williams 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. 1. Rate of growth in sales for the current year compared with past years 2. Years of experience for salespersons 3. Size of sales territory 4. Actual sales compared with budgeted sales 5. All of the above 2/6 96
Salespersons' Report and Analysis Pachec 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 June 30 are as follows: Variable Total Variable Cost Selling of Goods Sold Salesperson Sales Expenses Asarenka $437,500 $196,875 $83,125 Crowell 91,200 570,000 228,000 Dempster 675,000 310,500 141,750 587,500 123,375 MacLean 246,750 Ortiz 525,000 126,000 215,250 Sullivan 587,500 246,750 99,875 Williams 575,000 253,000 115,000 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. Do Pachec Inc Salespersons' Analysis For the Year Ended June 30 Variable Cost of Goods Sold Variable Selling Expenses Contribution Margin as a Percent of Sales Contribution Margin Salesperson as a Percent of Sales Ratio % Asarenka % Crowell % % % Dempster MacLean % % Ortiz Sullivan % Williams 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. 1. Rate of growth in sales for the current year compared with past years 2. Years of experience for salespersons 3. Size of sales territory 4. Actual sales compared with budgeted sales 5. All of the above 2/6 96
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Salespersons' Report and Analysis
Pachec 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 June 30 are as follows:
Variable
Total
Variable Cost
Selling
of Goods Sold
Salesperson
Sales
Expenses
Asarenka
$437,500
$196,875
$83,125
Crowell
91,200
570,000
228,000
Dempster
675,000
310,500
141,750
587,500
123,375
MacLean
246,750
Ortiz
525,000
126,000
215,250
Sullivan
587,500
246,750
99,875
Williams
575,000
253,000
115,000
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.
Do
Transcribed Image Text:Pachec Inc
Salespersons' Analysis
For the Year Ended June 30
Variable Cost of Goods Sold Variable Selling Expenses Contribution Margin
as a Percent of Sales
Contribution Margin
Salesperson
as a Percent of Sales
Ratio
%
Asarenka
%
Crowell
%
%
%
Dempster
MacLean
%
%
Ortiz
Sullivan
%
Williams
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.
1. Rate of growth in sales for the current year compared with past years
2. Years of experience for salespersons
3. Size of sales territory
4. Actual sales compared with budgeted sales
5. All of the above
2/6
96
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