eBook Show Me How Calculator Sales Territory and Salesperson Profitability Analysis Havasu Off-Road Inc, manufactures and sells a variety of commercial vehicles 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: $15,500 $9,300 $16,000 $8,000 12% $10,000 $9,000 Sales price Variable cost of goods sold Commission rate Units sold Manufacturing margin ratio $14,000 $8,400 10% 40 40% os 50% 50% a. 1. Prepare a contribution margin by salesperson report. Compute the contribution margin ratio for each salesperson Havasu Off-Road Inc Contribution Margin by Salesperson Sales Variable cost of goods sold Manufacturing margin Previous Check My Work SA for Greg eBook * Show Me How Calculator Sales Variable cost of goods sold Manufacturing margin Variable commission expense Contribution margin Contribution margin ratio Feedback Check My Work a. 1. To recast the contribution margin data by salesperson report, multiply the sales volume by each per unit amount. To calculate the contribution margin ratio, divide the contribution margin by sales. a. 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 low 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 poorest contribution margin ratio among the four salespersons. Although Rene has a high variable cost of goods sold and also sells products with a low average sales price per unit, she has the second highest total contribution margin. Previous Check My Work Save and Et Submit Assignment for Grating All werk saved. AW TO DO eBook Show Me How Calculator b. 1. Prepare a contribution margin by territory report. Compute the contribution margin for each territory as a percent, rounded to one decimal place Havasu Off-Road Inc. Contribution Margin by Territory Northeast Southwest Sales Variable cost of goods sold Manufacturing margin Variable commission expense Contribution margin Contribution margin ratio Chow b. 1. Combine salesperson data for each territory and then recalculate the contribution margin ratie by dividing the contribution margin by se rest n the b. 2. Interpret the report. The Southwest Region has volume, has the highest more sales and more contribution margin. In the Southwest Region, the salesperson with the contribution margin ratio. The Southwest Region has the highest performance, even thought the Previous Check My Work for Gran Save and S
