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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

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:

Salesperson Total Sales Variable Cost of Goods Sold Variable Selling Expenses
Case $438,000 $232,140 $96,360
Dix 626,000 363,080 100,160
Johnson 451,000 180,400 99,220
LaFave 485,000 184,300 101,850
Orcas 408,000 171,360 69,360
Sussman 627,000 351,120 100,320
Willbond 426,000 217,260 80,940

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.

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

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