Question
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
-
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 $622,000 $348,320 $105,740 Dix 444,000 150,960 93,240 Johnson 628,000 232,360 81,640 LaFave 346,000 131,480 55,360 Orcas 578,000 317,900 121,380 Sussman 535,000 230,050 96,300 Willbond 559,000 285,090 89,440 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 $fill in the blank 4d14b2fe0fcff90_1 fill in the blank 4d14b2fe0fcff90_2% fill in the blank 4d14b2fe0fcff90_3% fill in the blank 4d14b2fe0fcff90_4% Dix fill in the blank 4d14b2fe0fcff90_5 fill in the blank 4d14b2fe0fcff90_6% fill in the blank 4d14b2fe0fcff90_7% fill in the blank 4d14b2fe0fcff90_8% Johnson fill in the blank 4d14b2fe0fcff90_9 fill in the blank 4d14b2fe0fcff90_10% fill in the blank 4d14b2fe0fcff90_11% fill in the blank 4d14b2fe0fcff90_12% LaFave fill in the blank 4d14b2fe0fcff90_13 fill in the blank 4d14b2fe0fcff90_14% fill in the blank 4d14b2fe0fcff90_15% fill in the blank 4d14b2fe0fcff90_16% Orcas fill in the blank 4d14b2fe0fcff90_17 fill in the blank 4d14b2fe0fcff90_18% fill in the blank 4d14b2fe0fcff90_19% fill in the blank 4d14b2fe0fcff90_20% Sussman fill in the blank 4d14b2fe0fcff90_21 fill in the blank 4d14b2fe0fcff90_22% fill in the blank 4d14b2fe0fcff90_23% fill in the blank 4d14b2fe0fcff90_24% Willbond fill in the blank 4d14b2fe0fcff90_25 fill in the blank 4d14b2fe0fcff90_26% fill in the blank 4d14b2fe0fcff90_27% fill in the blank 4d14b2fe0fcff90_28% 2. Which salesperson generated the highest contribution margin ratio for the year?
CaseDixJohnsonLaFaveOrcasSussmanWillbond
3. Identify the factors other than contribution margin that should be considered in evaluating the performance of salespersons.
- Rate of growth in sales for the current year compared with past years
- Years of experience for salespersons
- Size of sales territory
- Actual sales compared with budgeted sales
- All of the above
12345
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started