Salespersons' Report and Analysis

Waltham Industries Inc. employs seven salespersons to sell and distribute its product throughout the state. Data taken from reports received from the salespersons during the year ended December 31 are as follows:

Salesperson	Total Sales	Variable Cost of Goods Sold	Variable Selling Expenses
Case	$531,000	$297,360	$106,200
Dix	355,000	181,050	56,800
Johnson	473,000	245,960	104,060
LaFave	489,000	254,280	88,020
Orcas	551,000	247,950	82,650
Sussman	461,000	239,720	96,810
Willbond	324,000	136,080	48,600

Required:

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1. Prepare a table indicating contribution margin, variable cost of goods sold as a percent of sales, variable selling expenses as a percent of sales, and contribution margin ratio by salesperson. Round percents to the nearest whole number. Enter all amounts as positive numbers.

Waltham Industries Inc. Salespersons' Analysis For the Year Ended December 31

Salesperson	Contribution Margin	Variable Cost of Goods Sold as a Percent of Sales	Variable Selling Expenses as a Percent of Sales	Contribution Margin Ratio
Case	$Case	Case%	Case%	Case%
Dix	Dix	Dix%	Dix%	Dix%
Johnson	Johnson	Johnson%	Johnson%	Johnson%
LaFave	LaFave	LaFave%	LaFave%	LaFave%
Orcas	Orcas	Orcas%	Orcas%	Orcas%
Sussman	Sussman	Sussman%	Sussman%	Sussman%
Willbond	Willbond	Willbond%	Willbond%	Willbond%

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Calculate:

Column 1: Contribution margin = Total sales (Variable cost of goods sold + Variable selling expenses)

Column 2: Variable cost of goods sold as a percent of sales = Variable cost of goods sold/Total sales

Column 3: Variable selling expenses as a percent of sales = Variable selling expenses/Total sales

Column 4: Contribution margin ratio = Contribution margin/Total sales

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2. Which salesperson generated the highest contribution margin ratio for the year? fill in the blank 1 of 1

CaseDixJohnsonLaFaveOrcasSussmanWillbondWillbond

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2. The salesperson who generated the highest contribution margin ratio for the year, probably sells a favorable mix of product that has high manufacturing margins as a percent of sales.

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3. Identify the factors other than contribution margin that should be considered in evaluating the performance of salespersons. 1. Rate of growth in sales for the current year compared with past years 2. Years of experience for salespersons 3. Size of sales territory 4. Actual sales compared with budgeted sales 5. All of the above fill in the blank 1 of 1

123455

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3. There are numerous factors, other than contribution margin, that should be considered in evaluating the performance of salesperson.

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Partially correct

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