3. Identify the factors other than contribution margin that should be considered in evaluating the performance of salespersons. 1. Rate of growth in sales for the current year compared with past years 2. Years of experience for salespersons 3. Size of sales territory 4. Actual sales compared with budgeted sales 5. All of the above Feedback Check My Work 3. There are numerous factors, other than contribution margin, that should be considered in evaluating the performance of salesperson. Feedback Dix 181,640 X 53 X % 19 % 47 X % Johnson % % % LaFave % % % % % % Orcas Sussman Willbond % % % % % % Feedback Check My Work Calculate: Column 1: Contribution margin = Total sales - (Variable cost of goods sold + Variable selling expenses) Column 2: Variable cost of goods sold as a percent of sales = Variable cost of goods sold/Total sales Column 3: Variable selling expenses as a percent of sales = Variable selling expenses/Total sales Column 4: Contribution margin ratio = Contribution margin/Total sales 2. Which salesperson generated the highest contribution margin ratio for the year? Case Feedback Check My Work Salespersons' Report and Analysis 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 Dix $411,000 384,000 $168,510 $57,540 207,360 72,960 Johnson 403,000 201,500 64,480 LaFave 437,000 235,980 96,140 Orcas 601,000 336,560 96,160 Sussman 370,000 Willbond 498,000 144,300 189,240 77,700 89,640 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 percents to the nearest whole number. Enter all amounts as positive numbers. Waltham Industries Inc. Salespersons' Analysis For the Year Ended December 31 Salesperson Contribution Margin Case Variable Cost of Goods Sold as a Percent of Sales Variable Selling Expenses Contribution Margin as a Percent of Sales Ratio Dix 184,950 181,640 X 41% 14 % 59 X % 53 X % 19 % 47 X %