Reyes Industries Inc. manufactures and sells a variety of commercial vehicles in the North east and South
Question:
Reyes Industries Inc. manufactures and sells a variety of commercial vehicles in the North east and South west 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:
a. 1. Prepare a contribution margin by salesperson report. Calculate the contribution margin ratio for each salesperson. 2. Interpret the report. b. 1. Prepare a contribution margin by territory report. Calculate the contribution margin for each territory as a whole percent, rounded to one decimal place. 2. Interpret thereport.
Contribution Margin Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
Transcribed Image Text:
Northeast Southwest Cassy G. Todd Tim Jeff Average per unit: 96,000 57,600 12% 28 40% $84,000 33,600 10% 24 60% $108,000 64800 16% 24 40% $78,000 31,200 12% 38 60% ales price... Commission rate..
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a 1 REYES INDUSTRIES INC Contribution Margin by Salesperson Cassy G Todd Tim Jeff Sales 2688000 2016000 2592000 2964000 Variable cost of goods sold 16...View the full answer
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