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: Total Sales Variable Cost of Goods Sold Variable Selling Expenses Salesperson Case $610,000 $268,400 $109,800 Dix 603,000 241,200 96,480 Johnson 588,000 305,760 105,840 LaFave 586,000 281,280 123,060 Orcas 616,000 221,760 86,240 Sussman 620,000 310,000 124,000 Willbond 592,000 272,320 88,800 Instructions 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 whole percent. 2. - Which salesperson generated the highest contribution margin ratio for the year and why? 3. Briefly list factors other than contribution margin that should be considered in evaluating the performance of salespersons.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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:
Total
Sales
Variable Cost
of Goods Sold
Variable
Selling
Expenses
Salesperson
Case
$610,000
$268,400
$109,800
Dix
603,000
241,200
96,480
Johnson
588,000
305,760
105,840
LaFave
586,000
281,280
123,060
Orcas
616,000
221,760
86,240
Sussman
620,000
310,000
124,000
Willbond
592,000
272,320
88,800
Instructions
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 whole percent.
2.
- Which salesperson generated the highest contribution margin ratio for the year and why?
3.
Briefly list factors other than contribution margin that should be considered in
evaluating the performance of salespersons.
Transcribed Image Text: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: Total Sales Variable Cost of Goods Sold Variable Selling Expenses Salesperson Case $610,000 $268,400 $109,800 Dix 603,000 241,200 96,480 Johnson 588,000 305,760 105,840 LaFave 586,000 281,280 123,060 Orcas 616,000 221,760 86,240 Sussman 620,000 310,000 124,000 Willbond 592,000 272,320 88,800 Instructions 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 whole percent. 2. - Which salesperson generated the highest contribution margin ratio for the year and why? 3. Briefly list factors other than contribution margin that should be considered in evaluating the performance of salespersons.
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