Salespersons' Report and AnalysisWalthman 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:SalespersonTotal SalesVariable Cost of Goods SoldVariable Selling ExpensesCase$432,000 $211,680 $86,400 Dix347,000 166,560 72,870 Johnson564,000 293,280 101,520 LaFave611,000 293,280 85,540 Orcas588,000 199,920 76,440 Sussman437,000 214,130 74,290 Willbond525,000 252,000 73,500 Required:1. Prepare a table indicating contribution margin, variable cost of goods sold as a percent of sales, variable selling expenses as a percent of sales, and contribution margin ratio by salesperson. Round percents to the nearest whole number. Enter all amounts as positive numbers.Waltham Industries Inc.Salespersons' AnalysisFor the Year Ended December 31SalespersonContribution MarginVariable Cost of GoodsSold as a Percent of SalesVariable Selling Expensesas a Percent of SalesContribution MarginRatioCase$fill in the blank 36114003efb8077_1fill in the blank 36114003efb8077_2%fill in the blank 36114003efb8077_3%fill in the blank 36114003efb8077_4%Dixfill in the blank 36114003efb8077_5fill in the blank 36114003efb8077_6%fill in the blank 36114003efb8077_7%fill in the blank 36114003efb8077_8%Johnsonfill in the blank 36114003efb8077_9fill in the blank 36114003efb8077_10%fill in the blank 36114003efb8077_11%fill in the blank 36114003efb8077_12%LaFavefill in the blank 36114003efb8077_13fill in the blank 36114003efb8077_14%fill in the blank 36114003efb8077_15%fill in the blank 36114003efb8077_16%Orcasfill in the blank 36114003efb8077_17fill in the blank 36114003efb8077_18%fill in the blank 36114003efb8077_19%fill in the blank 36114003efb8077_20%Sussmanfill in the blank 36114003efb8077_21fill in the blank 36114003efb8077_22%fill in the blank 36114003efb8077_23%fill in the blank 36114003efb8077_24%Willbondfill in the blank 36114003efb8077_25fill in the blank 36114003efb8077_26%fill in the blank 36114003efb8077_27%fill in the blank 36114003efb8077_28%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 yearsYears of experience for salespersonsSize of sales territoryActual sales compared with budgeted salesAll of the above

Cost of goods sold means the cost of inventory or direct price related to manufacturing of a product which is being sold. It is the value carried during a given period. It is the difference between the Sales price and Gross profit margin. Solution: When evaluating and comparing the performance of salespersons, it is not useful to only look at the sales revenue generated by each. The cost of the goods sold, the margin on them and the selling expenses incurred by each salesperson should also be considered 1) Sales persons Analysis For the year ended December 31 Sales person Contribution margin, $ = (Sales - Variable COGS - Variable Selling expenses) Variable cost of goods sold as a percentage of sales = Total Variable COGS/ Total sales * 100 Variable selling expenses as a percentage of sales = = Total Variable Selling expenses / Total sales Contribution margin ratio = Contribution margin / net sales Case 133,920 49% 20% 31% Dix 107,570 48% 21% 31% Jhonson 169,200 52% 18% 30% LaFave 232,180 48% 14% 38% Orcas 311,640 34% 13% 53% Sussman 148,580 49% 17% 34% Willbond 199,500 48% 14% 38% 2) Contribution Margin equals sales less variable costs. Contribution Margin is calculated by deducting variable costs from sales. Therefore, low variable costs will provide higher contribution margin and contribution margin ratio. Sales person Orcas has the highest contribution margin ratio due to low variable costs of goods sold and variable selling expenses as percentage of sales. 3) Management should not focus only on numbers and must take into account other factors affecting the company as a whole. Other performance measures should be considered in evaluating the salesperson's performance. Contribution margin is not the only factor to be taken into account since other aspects may impact sales such as geographical area and types of customers. The demand for a product may vary which would require different levels of effort and expertise from the salesperson to generate targeted amounts of sales. Therefore, all of the given statements are correct that is option (5).Thus, we worked on the requirement of the given question.

Answered: Salespersons' Report and Analysis…

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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	$432,000		$211,680	$86,400
Dix	347,000		166,560	72,870
Johnson	564,000		293,280	101,520
LaFave	611,000		293,280	85,540
Orcas	588,000		199,920	76,440
Sussman	437,000		214,130	74,290
Willbond	525,000		252,000	73,500

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' Analysis
For 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	$fill in the blank 36114003efb8077_1	fill in the blank 36114003efb8077_2%	fill in the blank 36114003efb8077_3%	fill in the blank 36114003efb8077_4%
Dix	fill in the blank 36114003efb8077_5	fill in the blank 36114003efb8077_6%	fill in the blank 36114003efb8077_7%	fill in the blank 36114003efb8077_8%
Johnson	fill in the blank 36114003efb8077_9	fill in the blank 36114003efb8077_10%	fill in the blank 36114003efb8077_11%	fill in the blank 36114003efb8077_12%
LaFave	fill in the blank 36114003efb8077_13	fill in the blank 36114003efb8077_14%	fill in the blank 36114003efb8077_15%	fill in the blank 36114003efb8077_16%
Orcas	fill in the blank 36114003efb8077_17	fill in the blank 36114003efb8077_18%	fill in the blank 36114003efb8077_19%	fill in the blank 36114003efb8077_20%
Sussman	fill in the blank 36114003efb8077_21	fill in the blank 36114003efb8077_22%	fill in the blank 36114003efb8077_23%	fill in the blank 36114003efb8077_24%
Willbond	fill in the blank 36114003efb8077_25	fill in the blank 36114003efb8077_26%	fill in the blank 36114003efb8077_27%	fill in the blank 36114003efb8077_28%

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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