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Havasu Off-Road Ine. manufactures and sells a variety of commercial vehicles in the Northeast and Southwest regions. There are two salespersons assigned to each territory.

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Havasu Off-Road Ine. manufactures and sells a variety of commercial vehicles in the Northeast and Southwest regions. There are two salespersons assigned to each territory. Higher commission rotes go to the most experienced salespersons. The following sales statistics are available for each saiesperson: a. 1. Prepare a contribution margin by salesperson report. Compute the contribution margin ratio for each salesperson. Havasu Off-Road Inc. Contribution Margin by Salespersen a. 2. Interpret the report. Paul earns the contribution margin and has the contributon margin rato. This is because he sells the units, has a commission rate, and sells a product mix with a manufacturing margin. steve also se products with a average manufacturing margin but at a commission rate. Colleen has the contribution margin ratio among the four salespersons. Athough flene has a high variable cost of goods sold and also selis products with a average sales price per unit, she has the second total contribution margin. b. 1. Prepare a contribution margin by terntory report. Compute the contribution margin for each terntory as a percent, rounded to one decimal place. Havasu OIf-Road Inc. Contribution Margin by Territory b. 2. Interpret the report: The Southwest Region has more sales and 1 more contnbution mergin. In the Southesest Regian, the salesperson with the highest saies unit volume, has the tontribution margin ratio. The Southwest Region has the performance, even though it also has the salesperson with the contnbution margin retio. The Northeast Region contnbution margin is than the sovthwest Region because of the outstanding performance of

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