Salespersons' Report and AnalysisWalthman 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 SoldVariable Selling Expenses$115,940135,000279,790236,340283,040282,150264,150CaseDixJohnsonLaFaveOrcasSussmanWillbondRequired: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 MarginCaseDixJohnsonLaFaveOrcas$341,000375,000571,000606,000488,000627,000587,000SussmanWillbond$$51,15075,000108,49084,84078,080112,860105,660Waltham Industries Inc.Salespersons' AnalysisFor the Year Ended December 31Variable Cost of GoodsSold as a Percent of Sales%1%%%1%1%1%Variable Selling Expenses Contribution Marginas a Percent of SalesRatio%%%1%1%%%2. Which salesperson generated the highest contribution margin ratio for the year?1%%1%%1%%% 3. Identify the factors other than contribution margin that should be considered in evaluating the performance of salespersons.1. Rate of growth in sales for the current year compared with past years2. Years of experience for salespersons3. Size of sales territory4. Actual sales compared with budgeted sales5. All of the above

"Contribution margin tells you the aggregate amount of revenue available after variable costs to…

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: Variable Selling Expenses Salesperson Total Sales Variable Cost of Goods Sold Case Dix Johnson LaFave Orcas Sussman Willbond Required: Case Dix $341,000 375,000 571,000 606,000 488,000 627,000 587,000 Johnson LaFave Orcas $115,940 135,000 279,790 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. Sussman Willbond 236,340 283,040 282,150 264,150 Variable Cost of Goods Salesperson Contribution Margin Sold as a Percent of Sales as a Percent of Sales % $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 1% 11% 1% 1% Variable Selling Expenses Contribution Margin % P %% %% 2. Which salesperson generated the highest contribution margin ratio for the year? Ratio P

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: Variable Selling Expenses Salesperson Total Sales Variable Cost of Goods Sold Case Dix Johnson LaFave Orcas Sussman Willbond Required: Case Dix $341,000 375,000 571,000 606,000 488,000 627,000 587,000 Johnson LaFave Orcas $115,940 135,000 279,790 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. Sussman Willbond 236,340 283,040 282,150 264,150 Variable Cost of Goods Salesperson Contribution Margin Sold as a Percent of Sales as a Percent of Sales % $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 1% 11% 1% 1% Variable Selling Expenses Contribution Margin % P %% %% 2. Which salesperson generated the highest contribution margin ratio for the year? Ratio P

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter21: Variable Costing For Management analysis

Section: Chapter Questions

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: 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.
Cost of Goods Manufactured, Income Statement W. W. Phillips Company produced 4,000 leather recliners during the year. These recliners sell for 400 each. Phillips had 500 recliners in finished goods inventory at the beginning of the year. At the end of the year, there were 700 recliners in finished goods inventory. Phillips accounting records provide the following information: Required: 1. Prepare a statement of cost of goods manufactured. 2. Compute the average cost of producing one unit of product in the year. 3. Prepare an income statement for external users.
The general merchandise retail industry has a number of segments represented by the following companies: For a recent year, the following cost of goods sold and beginning and ending inventories are provided from corporate annual reports (in millions) for these three companies: a. Determine the inventory turnover ratio for all three companies. Round all calculations to one decimal place. b. Determine the number of days sales in inventory for all three companies. Use 365 days and round all calculations to one decimal place. c. Interpret these results based on each companys merchandising concept.
Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
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GROSS PROFIT SECTION OF DE PART MENT AL INCO ME ST ATE MENT Bill Walters and Alice Jennings are partners in a business called Walters and Jennings Sportswear that sells athletic footwear. They have organized the business on a departmental basis as follows: running shoes, walking shoes, and specialty shoes. At the end of the first year of operation, the sales and cost of goods sold for the three departments are as follows: Prepare the gross profit section of a departmental income statement for the year ended December 31, 20--. Show the gross profit for each department and for the business in total.
The following information is available for Cooke Company for the current year: The gross margin is 40% of net sales. What is the cost of goods available for sale? a. 5840,000 b. 960,000 c. 1,200,000 d. 1,220,000
Product cost concept of product pricing Based on the data presented in Exercise 12-15, assume that Willis Products Inc. uses the product cost concept of applying the cost-plus approach to product pricing. a.Determine the total manufacturing costs and the cost amount per unit for the production and sale of 200,000 units. b.Determine the product cost markup percentage per unit. Round to two decimal place. c.Determine the selling price per unit. Round to the nearest dollar.
Use the following information for Multiple- Choice Questions 2-13 through 2-18: Last year, Barnard Company incurred the following costs: Barnard produced and sold 10,000 units at a price of 31 each. 2-15 Refer to the information for Barnard Company on the previous page. The cost of goods sold per unit is a. 7.00. b. 20.00. c. 15.00. d. 5.00. e. 27.60.
West Island distributes a single product. The companys sales and expenses for the month of June are shown. Using the information presented, answer these questions: A. What is the break-even point in units sold and dollar sales? B. What is the total contribution margin at the break-even point? C. If West Island wants to earn a profit of $21,000, how many units would they have to sell? D. Prepare a contribution margin income statement that reflects sales necessary to achieve the target profit.