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 year ended December 31 are as follows:

Salesperson	Total Sales		Variable Cost of Goods Sold		Variable Selling Expenses
Case	$610,000		$268,400		$109,800
Dix	603,000		241,200		96,480
Johnson	588,000		305,760		105,840
LaFave	586,000		281,280		123,060
Orcas	616,000		221,760		86,240
Sussman	620,000		310,000		124,000
Willbond	592,000		272,320		88,800

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.

Walthman 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

Answer 1

Salse Persons Case Dix Johnson Lafave Orcas Sussman Willbond Variable Cost of Variable Selling Total Varaible Contribution Total Sales goods sold Expense Expenses Margin 610000 268400 109800 378200 2318001 603000 241200 96480 337680 265320 588000 305760 105840 411600 176400 586000 281280 123060 404340 181660 616000 221760 86240 308000 3080001 620000 310000 124000 434000 186000 592000 272320 88800 361120 2308801 Walthman Industries Inc Salespersons's Analysis For the Year Ended December 31 Variable Cost of Variable Selling Contribution goods sold as a % Expense as a % of Contribution Salse Persons Margin of Sales sales Margin Ratio Case 231800 44% 18% 38% Dix Diy 265320) 40% 44% Johnson 176400 52% 18% 30% Lafave 181660 48% 21% 31% Orcas 308000 36% 14% 50% Sussman 186000 50% 20% 30% Willbond 230880 46% 39% 16% 159 Which Sales man genereted the High contribution Margin Ratio Orcas Identrify the Factor other than contribution Margin should be considered All of the Above