Reyes Industries 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 Cassy G Todd Tim Jeff Average per unit: $97,000 $83,000 $105,000 $78,000 Sales price Variable cost of goods sold 58,200 33,200 63,000 31,200 20% 18% 16% Commission rate 12% Units sold 36 30 50 40% 40% Manufacturing margin ratio 60% 60%