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 $349,000 $115,170 $69,800 Dix 346,000 138,400 55,360 Johnson 588,000 217,560 76,440 LaFave 533,000 202,540 90,610 Orcas 557,000 245,080 72,410 Sussman 344,000 196,080 72,240 Willbond 408,000 159,120 61,200 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 17505b04906ff94_1 fill in the blank 17505b04906ff94_2% fill in the blank 17505b04906ff94_3% fill in the blank 17505b04906ff94_4% Dix fill in the blank 17505b04906ff94_5 fill in the blank 17505b04906ff94_6% fill in the blank 17505b04906ff94_7% fill in the blank 17505b04906ff94_8% Johnson fill in the blank 17505b04906ff94_9 fill in the blank 17505b04906ff94_10% fill in the blank 17505b04906ff94_11% fill in the blank 17505b04906ff94_12% LaFave fill in the blank 17505b04906ff94_13 fill in the blank 17505b04906ff94_14% fill in the blank 17505b04906ff94_15% fill in the blank 17505b04906ff94_16% Orcas fill in the blank 17505b04906ff94_17 fill in the blank 17505b04906ff94_18% fill in the blank 17505b04906ff94_19% fill in the blank 17505b04906ff94_20% Sussman fill in the blank 17505b04906ff94_21 fill in the blank 17505b04906ff94_22% fill in the blank 17505b04906ff94_23% fill in the blank 17505b04906ff94_24% Willbond fill in the blank 17505b04906ff94_25 fill in the blank 17505b04906ff94_26% fill in the blank 17505b04906ff94_27% fill in the blank 17505b04906ff94_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
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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 | $349,000 | $115,170 | $69,800 | |||||
Dix | 346,000 | 138,400 | 55,360 | |||||
Johnson | 588,000 | 217,560 | 76,440 | |||||
LaFave | 533,000 | 202,540 | 90,610 | |||||
Orcas | 557,000 | 245,080 | 72,410 | |||||
Sussman | 344,000 | 196,080 | 72,240 | |||||
Willbond | 408,000 | 159,120 | 61,200 |
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 17505b04906ff94_1 | fill in the blank 17505b04906ff94_2% | fill in the blank 17505b04906ff94_3% | fill in the blank 17505b04906ff94_4% |
Dix | fill in the blank 17505b04906ff94_5 | fill in the blank 17505b04906ff94_6% | fill in the blank 17505b04906ff94_7% | fill in the blank 17505b04906ff94_8% |
Johnson | fill in the blank 17505b04906ff94_9 | fill in the blank 17505b04906ff94_10% | fill in the blank 17505b04906ff94_11% | fill in the blank 17505b04906ff94_12% |
LaFave | fill in the blank 17505b04906ff94_13 | fill in the blank 17505b04906ff94_14% | fill in the blank 17505b04906ff94_15% | fill in the blank 17505b04906ff94_16% |
Orcas | fill in the blank 17505b04906ff94_17 | fill in the blank 17505b04906ff94_18% | fill in the blank 17505b04906ff94_19% | fill in the blank 17505b04906ff94_20% |
Sussman | fill in the blank 17505b04906ff94_21 | fill in the blank 17505b04906ff94_22% | fill in the blank 17505b04906ff94_23% | fill in the blank 17505b04906ff94_24% |
Willbond | fill in the blank 17505b04906ff94_25 | fill in the blank 17505b04906ff94_26% | fill in the blank 17505b04906ff94_27% | fill in the blank 17505b04906ff94_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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