Schmidt Equipment 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 June 30, 2010, 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 ofsalespersons.

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Total Sales Variable Cost of Goods Sold Variable Selling Expenses Salesperson Applegate Cullinan Mathews Morgan Ribisl Wellman Zick $290,000 380,000 410,000 390,000 350,000 392,000 384,000 $118,900 138,700 172,200 150,150 131,250 148,960 153,600 $49.300 53,200 77,900 74,100 77,000 58,800 69,120