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:

Sales Territory and Salesperson Profitability Analysis following sales statistics are available for each salesperson: 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 Feedback Check My Work a. 2. Interpret the report. Paul earns the ' contribution margin and has the manufacturing margin. Steve also sells products with a a high variable cost of goods sold and also sells products with a contribution margin ratio. This is because he sells the average manufacturing margin but at a t average sales price per unit, she has the second ! units, has a! Colleen has the total contribution margin. commission rate, and sells a product mix with a ' contribution margin ratio among the four salespersons. Although Rene has 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. Havasu Off-Road Inc. Contribution Margin by Territory Feedback Check My Work b. 2. Interpret the report. The Southwest Region has \$ more sales and $ more contribution margin. In the Southwest Region, the salesperson with the highest sales unit volume, has the / contribution margin ratio. The Southwest Region has th performance, even though it also has the salesperson with the contribution margin ratio. The Northeast Region contribution margin is than the Southwest Region because of the outstanding performance