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: Southwest Rene Steve Colleen Paul Average per unit Sales price variable cost of goods sold Commission rate Units sold Manufacturing margin ratio $15,500 16,000 14,000 18,000 $9,300 $8,000 8,400 9,000 8% 60 50% 8% 10% 36 40 509% a. 1. Prepare a contribution maroin by salesperson report. Calculate the contribution maroin ratlo for each salesperson. Havasu off-Road Inc. Contribution Margin by Salesperson Rene Steve Colleen Paul s ssa,000 V l v S60.000 v 1.000.000 v .800192.00036,000 540.000 s 223.200 v 192.000 v s 224.000 vCs40.000 v 384,000 Variable cost of ooods sold 334 Manufacturing margin Variable commission expense Contribution margin0145,9200o453,600 Contribution margin ratio 336,000 V 44,640 6,080 56,000 86,400 V 178,560 168,000 32% v 38 30% v Check My Work a. 1. To recast the contnbuton margin data by salesperson report, multiply the sales volume by each per unit amount To calculate the contribution margin ratio, drvide the contnbution margin by sales. Learning Oblective 4