Solution-Prepare a table indicating contribution margin

Prepare a table indicating contribution margin

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Reference no: EM132716626

Problem - 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	$610,000	$268,400	$109,800
Dix	603,000	241,200	96,480
Johnson	588,000	305,760	105,840
LaFave	586,000	281,280	123,060
Orcas	616,000	221,760	86,240
Sussman	620,000	310,000	124,000
Willbond	592,000	272,320	88,800

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 whole percent.

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.

Reference no: EM132716626

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Prepare a table indicating contribution margin

Reference no: EM132716626

Reference no: EM132716626

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