Chapter 21, Problem 4PB

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:

Instructions

1. 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.
2. 2. Which salesperson generated the highest contribution margin ratio for the year and why?
3. 3. Briefly list factors other than contribution margin that should be considered in evaluating the performance of salespersons.