Solution-Prepare a contribution margin by salesperson report

Prepare a contribution margin by salesperson report

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Reference no: EM132716611

Problem - Havasu Off-Road Inc. manufactures and sells a variety of commercial vehicles in the Northeast and Southwest 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:

	Northeast		Southwest
	Rene	Steve	Colleen	Paul
Average per unit:
Sales price	$15,500	$16,000	$14,000	$18,000
Variable cost of goods sold	$ 9,300	$ 8,000	$ 8,400	$ 9,000
Commission rate	8%	12%	10%	8%
Units sold	36	24	40	60
Manufacturing margin ratio	40%	50%	40%	50%

Required -

a. Prepare a contribution margin by salesperson report. Compute the contribution margin ratio for each salesperson. Interpret the report.

b. Prepare a contribution margin by territory report. Compute the contribution margin for each territory as a percent, rounded to one decimal place. Interpret the report.

Reference no: EM132716611

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Prepare a contribution margin by salesperson report

Reference no: EM132716611

Reference no: EM132716611

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