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 $18,200 $10,556 Average per unit: Sales price Variable cost of goods sold Commission rate Units sold Manufacturing margin ratio $11,800 $7,080 8% 36 40% $15,300 $8,874 12% 24 42% $8,400 $5,376 11% 38 36% required, round contribution margin ratio to one a. 1. Prepare a contribution margin by salesperson report. Calculate the contribution margin ratio for each salesperson decimal place Havasu Off-Road Inc. Contribution Margin by Salesperson Contribution Margin by Salesperson Sales Variable cost of goods sold Manufacturing margin Sales bin Contribution margin Contribution margin ratio a. 2. Interpret the report. Paul earns the highest contribution margin and as the highest contribution margin ratio. This is because he sells the most units, has a 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 b. 1. Prepare a contribution margin by territory report. Calculate the contribution margin for each territory as a percent, rounded to one decimal place. Havasu Off-Road Inc. Contribution Margin by Territory b. 1. Prepare a contribution margin by territory report. Calculate the contribution margin for each territory as a percent, rounded to one decimal place Havasu Off-Road Inc. Contribution Margin by Territory Northeast Southwest Contribution margin ratio w 1. Combine salesperson data for each territory and then recalculate the contribution margin ratio by dividing the contribution margin by sis. Learning Objective 4 b. 2. Interpret the report. The Southwest Region has $ volume, has the highest more sales and s more contribution margin. In the Southwest Region, the salesperson with the highest sales unit contribution margin ratio. The Southwest Region has the highest performance, even though it also has the salesperson with the