Financial And Managerial Accounting
15th Edition
ISBN: 9781337902663
Author: WARREN, Carl S.
Publisher: Cengage Learning,
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Textbook Question
Chapter 21, Problem 4PA
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:
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 to one digit after decimal point.)
- 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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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
TotalSales
Variable Costof Goods Sold
VariableSellingExpenses
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
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.
Walthman Industries Inc.
Salespersons' Analysis
For the Year Ended December 31
Salesperson
Contribution Margin
Variable Cost of…
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.
Waltham 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:
Variable Cost
Variable Selling
Salesperson Total Sales
of Goods Sold
Expenses
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
Willbond
592,000
272,320
124,000
88,800
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 Variable Selling Expenses Contribution Margin
as a Percent of…
Chapter 21 Solutions
Financial And Managerial Accounting
Ch. 21 - What types of costs are customarily included in...Ch. 21 - Which type of manufacturing cost (direct...Ch. 21 - Which of the following costs would be included in...Ch. 21 - In the variable costing income statement, how are...Ch. 21 - The manager of a company are planning to...Ch. 21 - Since all costs of operating a business are...Ch. 21 - Discuss how financial data prepared on the basis...Ch. 21 - Why might management analyze product...Ch. 21 - Explain why rewarding sales personnel on the basis...Ch. 21 - Explain why service companies use different...
Ch. 21 - Variable costing Marley Company has the following...Ch. 21 - Variable costingproduction exceeds sales Fixed...Ch. 21 - Variable costingsales exceed production The...Ch. 21 - Analyzing income under absorption and variable...Ch. 21 - Contribution margin by segment The following...Ch. 21 - At the end of the first year of operations, 21,500...Ch. 21 - Gallatin County Motors Inc. assembles and sells...Ch. 21 - Fresno Industries Inc. manufactures and sells...Ch. 21 - On March 31, the end of the first month of...Ch. 21 - On April 30, the end of the first month of...Ch. 21 - On October 31, the end of the first month of...Ch. 21 - The following data were adapted from a recent...Ch. 21 - Estimated income statements, using absorption and...Ch. 21 - The following data were adapted from a recent...Ch. 21 - How is the quantity factor for an increase or a...Ch. 21 - Explain why service companies use different...Ch. 21 - Galaxy Sports Inc. manufactures and sells two...Ch. 21 - Prob. 13ECh. 21 - Sales territory and salesperson profitability...Ch. 21 - Prob. 15ECh. 21 - Prob. 16ECh. 21 - Variable costing income statement for a service...Ch. 21 - Variable costing income statement for a service...Ch. 21 - Absorption and variable costing income statements...Ch. 21 - Prob. 2PACh. 21 - During the first month of operations ended May 31,...Ch. 21 - Salespersons report and analysis Walthman...Ch. 21 - Segment variable costing income statement and...Ch. 21 - Absorption and variable costing income statements...Ch. 21 - Income statements under absorption costing and...Ch. 21 - Absorption and variable costing income statements...Ch. 21 - Salespersons report and analysis Pachec Inc....Ch. 21 - Prob. 5PBCh. 21 - Comcast Corporation (CMCSA) is a global media and...Ch. 21 - Prob. 2MADCh. 21 - Prob. 3MADCh. 21 - Segment disclosure by Apple Inc. (AAPL) provides...Ch. 21 - Prob. 1TIFCh. 21 - Inventory effects under absorption costing BendOR,...Ch. 21 - Communication Bon Jager Inc. manufactures and...Ch. 21 - Data for the last fiscal year for Merlene Company...Ch. 21 - Chassen Company, a cracker and cookie...Ch. 21 - Mill Corporation had the following unit costs for...Ch. 21 - Bethany Company has just completed the first month...
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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: 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 to one digit after decimal point.) 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.arrow_forwardUsing the information in the previous exercises about Marleys Manufacturing, determine the operating income for department B, assuming department A sold department B 1,000 units during the month and department A reduces the selling price to the market price.arrow_forwardCustomers as a Cost Object Morrisom National Bank has requested an analysis of checking account profitability by customer type. Customers are categorized according to the size of their account: low balances, medium balances, and high balances. The activities associated with the three different customer categories and their associated annual costs are as follows: Additional data concerning the usage of the activities by the various customers are also provided: Required: (Note: Round answers to two decimal places.) 1. Calculate a cost per account per year by dividing the total cost of processing and maintaining checking accounts by the total number of accounts. What is the average fee per month that the bank should charge to cover the costs incurred because of checking accounts? 2. Calculate a cost per account by customer category by using activity rates. 3. Currently, the bank offers free checking to all of its customers. The interest revenues average 90 per account; however, the interest revenues earned per account by category are 80, 100, and 165 for the low-, medium-, and high-balance accounts, respectively. Calculate the average profit per account (average revenue minus average cost from Requirement 1). Then calculate the profit per account by using the revenue per customer type and the unit cost per customer type calculated in Requirement 2. 4. CONCEPTUAL CONNECTION After the analysis in Requirement 3, a vice president recommended eliminating the free checking feature for low-balance customers. The bank president expressed reluctance to do so, arguing that the low-balance customers more than made up for the loss through cross-sales. He presented a survey that showed that 50% of the customers would switch banks if a checking fee were imposed. Explain how you could verify the presidents argument by using ABC.arrow_forward
- Use the following information for Exercises 2-47 through 2-49. Jasper Company provided the following information for last year: Last year, beginning and ending inventories of work in process and finished goods equaled zero. Exercise 2-49 Income Statement Refer to the information for Jasper Company on the previous page. Required: 1. Prepare an income statement for Jasper for last year. Calculate the percentage of sales for each line item on the income statement. (Note: Round percentages to the nearest tenth of a percent.) 2. CONCEPTUAL CONNECTION Briefly explain how a manager could use the income statement created for Requirement 1 to better control costs.arrow_forwardSalespersons' 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…arrow_forwardSalespersons' 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 $429,000 $184,470 $90,090 Dix 417,000 212,670 58,380 Johnson 465,000 195,300 102,300 LaFave 585,000 204,750 87,750 Orcas 418,000 229,900 66,880 Sussman 407,000 215,710 85,470 Willbond 580,000 191,400 127,600 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…arrow_forward
- 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 $115,940 135,000 279,790 236,340 283,040 282,150 264,150 Case Dix Johnson LaFave Orcas Sussman Willbond 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. Salesperson Contribution Margin Case Dix Johnson LaFave Orcas $341,000 375,000 571,000 606,000 488,000 627,000 587,000 Sussman Willbond $ $51,150 75,000 108,490 84,840 78,080 112,860 105,660 Waltham Industries Inc. Salespersons' Analysis For the Year Ended December 31 Variable…arrow_forwardSalespersons' 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 $372,000 $197,160 $70,680 Dix 566,000 277,340 113,200 Johnson 594,000 308,880 118,800 LaFave 344,000 172,000 51,600 Orcas 346,000 110,720 58,820 Sussman 559,000 318,630 72,670 Willbond 395,000 134,300 75,050 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 31…arrow_forwardSalespersons' 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 $581,000 $284,690 $122,010 Dix 576,000 247,680 92,160 Johnson 587,000 246,540 129,140 LaFave 461,000 207,450 96,810 Orcas 525,000 194,250 84,000 Sussman 492,000 241,080 78,720 Willbond 426,000 187,440 55,380 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 Variable Cost of Goods Variable Selling Expenses Contribution Margin Salesperson Contribution…arrow_forward
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