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	$584,000		$198,560			$99,280
Dix	534,000		186,900			74,760
Johnson	436,000		187,480			69,760
LaFave	384,000		161,280			69,120
Orcas	526,000		247,220			110,460
Sussman	562,000		269,760			73,060
Willbond	580,000		284,200			98,600

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

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 $584,000 $198,560 $99,280 Dix 534,000 186,900 74,760 Johnson 436,000 187,480 69,760 LaFave 384,000 161,280 69,120 Orcas 526,000 247,220 110,460 Sussman 562,000 269,760 73,060 Willband 580,000 284,200 98,600 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 Sold as a Percent of Sales Variable Selling Expenses Contribution Margin as a Percent of Sales Ratio Case % % 215 Dix Johnson % LaFave 1% % % % % Orcas Sussman % Willband % % 9% 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