• Contribution margin
• Manufacturing margin
• Sales
• Variable cost of goods sold
• Variable commission expense

• Advertising expenses
• Factory depreciation
• Factory insurance
• Manufacturing supplies
• Sales commissions

• May 1 desired inventory
• May 31 desired inventory
• May 1 estimated inventory
• May 31 estimated inventory
• Supervisor salaries

Havasu Off-Road Inc. manufactures and sells a variety of commercial vehides in the Northeast and Southwest 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: Northeast Southwest Rene Steve Colleen Paul Average per unit: Sales price Variable cost of goods sold Commission rate Units sold Manufacturing margin ratio $13,200 $15,500 $8,100 $19,000 $8,184 $9,300 $5,022 $11,020 79% 12% 11% 7% 33 26 40 40 38% 40% 38% 42% a. 1. Prepare a contribution margin by salesperson report. Calculate the contribution margin ratio for each salesperson. If required, round contribution margin ratio to one decimal place. Havasu Off-Road Inc. Contribution Margin by Salesperson Rene Steve Colleen Paul Sales Contribution margin ratio 94 94 96 2. 2. Interpret the report. Paul earns the highest contribution margin and has the highest contribution margin ratio. This is because he sells the most units, has a high commission rate, and sells a product mix with a high manufacturing margin. Steve also sells products with a high average manufacturing margin but at a high commission rate. Colleen has the best contribution margin ratio among the four salespersons. Although Rene has a high variable cost of goods sold and also sells products with a high average sales price per unit, she has the second highest total contribution margin b. 1. Prepare a contribution margin by territory report. Calculate the contribution margin for each territory as a percent, rounded to one decimal place. Havasu Off-Road Inc. Contribution Margin by Territory Northeast Southwest Contribution margin ratio b. 2. Interpret the report, The Southwest Region has s more sales and more contribution margin. In the Southwest Region, the salesperson with the highest sales Factory Overhead Cost Budget Sweet Tooth Candy Company budgeted the following costs for anticipated production for August: Advertising expenses $254,990 Manufacturing supplies 13,980 Power and light 41,680 Sales commissions 278,610 Factory insurance 24,270 Production supervisor wages 122,590 Production control wages 31,870 bestimgularan Executive officer salaries 259,890 Materials management wages 35,060 Factory depreciation 19,860 Prepare a factory overhead cost budget, separating variable and fixed costs. Assume that factory insurance and depreciation are the only fixed factory costs. Sweet Tooth Candy Company Factory Overhead Cost Budget For the Month Ending August 31 Variable factory overhead costs: dilla Total variable factory overhead costs Fixed factory overhead costs: Total fixed factory overhead costs Total factory overhead costs Two-Leg Company manufactures slacks and jeans under a variety of brand names, such as Dackers and 501 Jeans Slacks and jeans are assembled by a variety of different sewing operations. Assume that the sales budget for Dockers and 501 Jeans shows estimates sales of 21,610 and 41,710 pairs, respectively, for May. The finished goods inventory is assumed as follows: Dockers 501 Jeans May i estimated inventory 970 1,180 May 31 desired inventory 360 1.470 Assume the following direct labor data per 10 pairs of Dockers and 501 Jeans for four different sewing operations: Direct Labor per 10 Pairs Dockers 501 Jeans Inseam 17 minutes 11 minutes Outersaam 21 14 Pockets 6 8 Zipper 10 6 Total 54 minutes 101 39 minutes a. Prepare a production budget for May. Prepare the budget in two columns: Dockers and 501 Jeans. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Two-Leg Company Production Budget For Month Ending May 31 (assumed data) Dockers 501 Jeans Expected units to be sold Total units available Total units to be produced b. Prepare the May direct labor cost budget for the four sewing operations, assuming a $10 wage per hour for the inseam and outerseam sewing operations and a $19 wage per hour for the packet and zipper sewing operations. Prepare the direct labor cost budget in four columns: inseam, outersem, pockets, and zipper. Two-Leg Company Direct Labor Cost Budget For Month Ending May 31 (assumed data) Inseam Outeream Pockets Zipper Total Dockers 501 Jeans Total minutes Total direct labor hours Direct labor rate Total direct labor cost Schedule of Cash Collections of Accounts Receivable OfficeMart Inc. has "cash and carry customers and credit customers. OfficeMart estimates that 30% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit customers, 20% pay their accounts in the month of sale, while the remaining 80% pay their accounts in the month following the month of sale. Projected sales for the next three months are as follows: October $121,000 November 151,000 December 221,000 The Accounts Receivable balance on September 30 was $81,000. Prepare a schedule of cash collections from sales for October, November, and December. Round all calculations to the nearest whole dollar. OfficeMart Inc. Schedule of Cash Collections from Sales For the Three Months Ending December 31 October November December Receipts from cash sales: Cash sales 36,300 45,300 66,300 September sales on account: Collected in October X October sales on account: Collected in October Collected in November November sales on account: Collected in November Collected in December December sales on account: Collected in December Total cash receipts X OOD