Salespersons’ report and analysis obj. 4 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 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 percents to a single digit.

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.