Sales Territory and Salesperson Profitability Analysis each salesperson: \begin{tabular}{lrrrr} & \multicolumn{2}{c}{ Northeast } & \multicolumn{2}{c}{ Southwest } \\ \cline { 2 - 5 } & Rene & Steve & Colleen & Paul \\ \hline Average per unit: & & & & \\ Sales price & $15,500 & $16,000 & $14,000 & $18,000 \\ Variable cost of goods sold & $9,300 & $8,000 & $8,400 & $9,000 \\ Commission rate & 8% & 12% & 10% & 8% \\ Units sold & 36 & 24 & 40 & 60 \\ Manufacturing margin ratio & 40% & 50% & 40% & 50% \end{tabular} 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 a. 2. Interpret the report. Paul earns the contribution margin and has the contribution margin ratio. This is because he sells the units, has a commission rate, and sells a product mix with a manufacturing margin. Steve also sells products with a average manufacturing margin but at a commission rate. Colleen has the contribution margin ratio among the four salespersons. Although Rene has a high variable cost of goods sold and also sells products with a average sales price per unit, she has the second total contribution margin. 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. b. 2. Interpret the report. The Southwest Region has $ more sales and $ performance, even though it also has the salesperson with the more contribution margin. In the Southwest Region, the salesperson with the highest sales unit volume, has the contribution margin ratio. The Northeast Region contribution margin is contribution margin ratio. The Southwest Region has the than the Southwest Region because of the outstanding performance of