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:

Sales price

$96,000

$84,000

$108,000

$78,000

Variable cost of goods sold

57,600

33,600

64,800

31,200

Commission rate

12%

16%

16%

12%

Units sold

28

24

24

38

Manufacturing margin ratio

40%

60%

40%

60%

Required:

A.

Prepare a contribution margin by salesperson report. Calculate the contribution margin ratio for each salesperson.*

B.

Prepare a contribution margin by territory report. Calculate the contribution margin for each territory as a percent, rounded to one decimal place.*

* Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.

Amount Descriptions
Contribution margin
Contribution margin ratio
Fixed expenses
Income from operations
Manufacturing margin
Sales
Sales mix
Variable commission expense
Variable cost of goods sold

Prepare a contribution margin by salesperson report. Calculate the contribution margin ratio for each salesperson. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.

Reyes Industries Inc.

Contribution Margin by Salesperson

1		Cassy G.	Todd	Tim	Jeff
2
3
4
5
6
7

Prepare a contribution margin by territory report. Calculate the contribution margin for each territory as a percent, rounded to one decimal place. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.

Reyes Industries Inc.

Contribution Margin by Territory

1		Northeast	Southwest
2
3
4
5
6
7