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$549,000 $181,170 $115,290 Dix615,000 344,400 79,950 Johnson458,000 224,420 59,540 LaFave471,000 235,500 84,780 Orcas444,000 186,480 66,600 Sussman516,000 237,360 67,080 Willbond456,000 164,160 77,520 Required:1. Prepare a table indicating contribution margin, variable cost of goods sold as a percent of sales, variable selling expenses as a percent of sales, and contribution margin ratio by salesperson. Round percents to the nearest whole number. Enter all amounts as positive numbers.Waltham Industries Inc.Salespersons' AnalysisFor the Year Ended December 31SalespersonContribution MarginVariable Cost of GoodsSold as a Percent of SalesVariable Selling Expensesas a Percent of SalesContribution MarginRatioCase$fill in the blank 731faf00df85016_1fill in the blank 731faf00df85016_2%fill in the blank 731faf00df85016_3%fill in the blank 731faf00df85016_4%Dixfill in the blank 731faf00df85016_5fill in the blank 731faf00df85016_6%fill in the blank 731faf00df85016_7%fill in the blank 731faf00df85016_8%Johnsonfill in the blank 731faf00df85016_9fill in the blank 731faf00df85016_10%fill in the blank 731faf00df85016_11%fill in the blank 731faf00df85016_12%LaFavefill in the blank 731faf00df85016_13fill in the blank 731faf00df85016_14%fill in the blank 731faf00df85016_15%fill in the blank 731faf00df85016_16%Orcasfill in the blank 731faf00df85016_17fill in the blank 731faf00df85016_18%fill in the blank 731faf00df85016_19%fill in the blank 731faf00df85016_20%Sussmanfill in the blank 731faf00df85016_21fill in the blank 731faf00df85016_22%fill in the blank 731faf00df85016_23%fill in the blank 731faf00df85016_24%Willbondfill in the blank 731faf00df85016_25fill in the blank 731faf00df85016_26%fill in the blank 731faf00df85016_27%fill in the blank 731faf00df85016_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

Contribution margin is the amount derived by deducting the cost of variable components from the selling price of an item. The contribution margin is the attributes to the profit and fixed cost of the item after deducting variable part from the selling price. 1. 2. The salesperson Will bound is having highest contribution margin ratio of 47%. 3. The factors other than contribution margin that should be considered in evaluating the performance of salespersons is 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. Hence the correct option is “5” all of the above.

Answered: Salesperson Total Sales Variable Cost…

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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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	$549,000		$181,170	$115,290
Dix	615,000		344,400	79,950
Johnson	458,000		224,420	59,540
LaFave	471,000		235,500	84,780
Orcas	444,000		186,480	66,600
Sussman	516,000		237,360	67,080
Willbond	456,000		164,160	77,520

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 731faf00df85016_1	fill in the blank 731faf00df85016_2%	fill in the blank 731faf00df85016_3%	fill in the blank 731faf00df85016_4%
Dix	fill in the blank 731faf00df85016_5	fill in the blank 731faf00df85016_6%	fill in the blank 731faf00df85016_7%	fill in the blank 731faf00df85016_8%
Johnson	fill in the blank 731faf00df85016_9	fill in the blank 731faf00df85016_10%	fill in the blank 731faf00df85016_11%	fill in the blank 731faf00df85016_12%
LaFave	fill in the blank 731faf00df85016_13	fill in the blank 731faf00df85016_14%	fill in the blank 731faf00df85016_15%	fill in the blank 731faf00df85016_16%
Orcas	fill in the blank 731faf00df85016_17	fill in the blank 731faf00df85016_18%	fill in the blank 731faf00df85016_19%	fill in the blank 731faf00df85016_20%
Sussman	fill in the blank 731faf00df85016_21	fill in the blank 731faf00df85016_22%	fill in the blank 731faf00df85016_23%	fill in the blank 731faf00df85016_24%
Willbond	fill in the blank 731faf00df85016_25	fill in the blank 731faf00df85016_26%	fill in the blank 731faf00df85016_27%	fill in the blank 731faf00df85016_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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Salesperson Total Sales Variable Cost of Goods Sold Variable Selling Expenses Case $549,000 $181,170 $115,290 Dix 615,000 344,400 79,950 Johnson 458,000 224,420 59,540 LaFave 471,000 235,500 84,780 Orcas 444,000 186,480 66,600 Sussman 516,000 237,360 67,080 Willbond 456,000 164,160 77,52