Question

1. 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	$502,000		$225,900			$105,420
   Dix	569,000		244,670			91,040
   Johnson	599,000		227,620			95,840
   LaFave	614,000		251,740			92,100
   Orcas	442,000		176,800			83,980
   Sussman	602,000		343,140			102,340
   Willbond	560,000		229,600			84,000

   Required:

   1. Prepare a table indicating The excess of sales over variable costs.contribution margin, Consists of direct materials, direct labor, and variable factory overhead for the units sold.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		%	%	%

   Feedback

   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

   Learning Objective 4.

   2. Which salesperson generated the highest contribution margin ratio for the year?

   Johnson
   • Case
   • Dix
   • Johnson
   • LaFave
   • Orcas
   • Sussman
   • Willbond

   Feedback

   Learning Objective 4.

   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
   5
   • 1
   • 2
   • 3
   • 4
   • 5

   Feedback

   Learning Objective 4.

   Feedback

   Partially correct

Loading item

There was an error loading this item. If this continues to occur, please contact Technical Support.

Check My Work

• Previous
• Next

• 100% Correct
• Partially Correct
• Incorrect
• Needs Instructor Grading

Basic Calculatorclose

0

UseEntBSBSpCEHomCEnd

789+

456-

123*

0.=/

Answer 1

1. Table

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	1,70,680	45.00%	21.00%	34.00%
Dix	2,33,290	43.00%	16.00%	41.00%
Johnson	2,75,540	38.00%	16.00%	46.00%
LaFave	2,70,160	41.00%	15.00%	44.00%
Orcas	1,81,220	40.00%	19.00%	41.00%
Sussman	1,56,520	57.00%	17.00%	26.00%
Willbond	2,46,400	41.00%	15.00%	44.00%

2. From the above table we can conclude that johnson has the highest contribution margin ratio of 46%

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

Answer to above question- All the above factors are to be considered for evaluating the performance of sales persons , Hence the answer is option 5