A company has fi ve salesmen working in its Chennai branch. The following information is available in the branch offi ce record for the month of March 2010. In assessing the performance of each salesman, branch offi ce costs of Rs. 30,000 are apportioned as a percentage of cost of goods sold. The results of salesmen Q and T are not satisfactory and their discharge is recommended. Do you consider the method of apportionment equitable and support the recommendation?

You are required to prepare comparative salesmen’s profi t and loss statement showing contribution margin and net profi t.

Transcribed Image Text:

Salesman Net Sales Rs. Cost of Goods Sold Rs. Travelling Expenses Rs. PORST 40,000 30,000 1,400 Q 80,000 74,000 1,200 20,000 12,000 800 60,000 48,000 1,000 40,000 36,000 1,200