alespersons' 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 $424,000 $233,200 $80,560 Dix 371,000 178,080 63,070 Johnson 469,000 262,640 75,040 LaFave 586,000 334,020 111,340 Orcas 538,000 199,060 91,460 Sussman 529,000 185,150 116,380 Willbond 569,000 216,220 91,040 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 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 $ % % % Dix $ % % % Johnson $ % % % LaFave $ % % % Orcas $ % % % Sussman $ % % % Willbond $ % % % 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

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter21: Variable Costing For Management analysis

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Problem 4PA: Salespersons report and analysis Walthman Industries Inc. employs seven salespersons to sell and...

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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	$424,000	$233,200	$80,560
Dix	371,000	178,080	63,070
Johnson	469,000	262,640	75,040
LaFave	586,000	334,020	111,340
Orcas	538,000	199,060	91,460
Sussman	529,000	185,150	116,380
Willbond	569,000	216,220	91,040

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

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	$	%	%	%
Dix	$	%	%	%
Johnson	$	%	%	%
LaFave	$	%	%	%
Orcas	$	%	%	%
Sussman	$	%	%	%
Willbond	$	%	%	%

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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