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 Average per unit: Sales price Variable cost of goods sold Commission rate $14,200 $8,520 7% 36 $15,900 $8,904 12% 25 $9,700 $5,820 12% 38 $18,700 $10,846 9% 42 42% Units sold Manufacturing margin ratio 40% 44% 40% a. 1. Prepare a contribution margin by salesperson report. Calculate the contribution margin ratio for each salesperson. If required, round contribution margin ratio to one decimal place. Havasu Off-Road Inc. Contribution Margin by Salesperson Rene Steve Colleen % Contribution margin ratio a. 2. Interpret the report. Paul earns the contribution margin and has the commission rate, and sells a product mix with a manufacturing margin but at a commission rate. Colleen has the Rene has a high variable cost of goods sold and also sells products with a contribution margin. contribution margin ratio. This is because he sells the units, has a manufacturing margin. Steve also sells products with a average contribution margin ratio among the four salespersons. Although average sales price per unit, she has the second total 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 % b. 2. Interpret the report. The Southwest Region has $ more sales and $ more sales more contribution margin. In the Southwest Region, the salesperson with the highest sales unit volume, has the contribution margin ratio. The Southwest Region has the performance, even though it also has the salesperson with the contribution margin and contribution margin ratio. The Northeast Region contribution margin is than the Southwest Region because of the outstanding performance of