Solution-Prepare a contribution margin by salesperson report

Prepare a contribution margin by salesperson report

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Reference no: EM132685875

Problem - Sales Territory and Salesperson Profitability Analysis

Loom Industries, Inc., manufactures and sells a variety of commercial vehicles in the North and South regions. There are two salespersons assigned to each territory. Higher commission rates go to the most experienced salespersons. The following sales statistics are available for each salesperson:

	North		South
	Kurt W.	Bart T.	Jody T.	Big T.
Average per unit:
Sales price	$48,000	$42,000	$54,000	$39,000
Variable cost of goods sold	28,800	16,800	32,400	15,600
Commission rate	10%	14%	14%	10%
Units sold	14	12	12	19
Manufacturing margin ratio	40%	60%	40%	60%

Required -

a1. Prepare a contribution margin by salesperson report. Calculate the contribution margin ratio for each salesperson.

a2. Interpret the report.

b1. Prepare a contribution margin by territory report. Calculate the contribution margin for each territory as a whole percent, rounded to one decimal place.

b2. Interpret the report.

Reference no: EM132685875

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Prepare a contribution margin by salesperson report

Reference no: EM132685875

Reference no: EM132685875

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