Salespersons' Report and Analysis

Walthman 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:

Required:

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.

Salesperson Total Sales Variable Selling Expenses Variable Cost of Goods Sold Case $582,000 $261,900 $75,660 356,700 110.700 Dix 615,000 Johnson 77,900 410,000 176,300 82,880 LaFave 518,000 295,260 561,000 Orcas 308,550 117,810 466,000 Sussman 191,060 102,520 Willbond 551,000 319,580 110,200 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 Dix Johnson LaFave Orcas Sussman Willbond 2. Which salesperson generated the highest contribution margin ratio for the year? 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