Financial And Managerial Accounting
15th Edition
ISBN: 9781337902663
Author: WARREN, Carl S.
Publisher: Cengage Learning,
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Textbook Question
Chapter 21, Problem 4PB
Salespersons’ report and analysis
Pachec 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 June 30 are as follows:
Instructions
- 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.
- 2. Which salesperson generated the highest contribution margin ratio for the year and why?
- 3. Briefly list factors other than contribution margin that should be considered in evaluating the performance of salespersons.
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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 the salespersons during the year ended December 31 are as follows:
Salesperson Total Sales Variable Cost of Goods Sold
Variable Selling Expenses
$115,940
135,000
279,790
236,340
283,040
282,150
264,150
Case
Dix
Johnson
LaFave
Orcas
Sussman
Willbond
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.
Salesperson Contribution Margin
Case
Dix
Johnson
LaFave
Orcas
$341,000
375,000
571,000
606,000
488,000
627,000
587,000
Sussman
Willbond
$
$51,150
75,000
108,490
84,840
78,080
112,860
105,660
Waltham Industries Inc.
Salespersons' Analysis
For the Year Ended December 31
Variable…
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
$429,000
$184,470
$90,090
Dix
417,000
212,670
58,380
Johnson
465,000
195,300
102,300
LaFave
585,000
204,750
87,750
Orcas
418,000
229,900
66,880
Sussman
407,000
215,710
85,470
Willbond
580,000
191,400
127,600
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…
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
$549,000
$181,170
$115,290
Dix
615,000
344,400
79,950
Johnson
458,000
224,420
59,540
LaFave
471,000
235,500
84,780
Orcas
444,000
186,480
66,600
Sussman
516,000
237,360
67,080
Willbond
456,000
164,160
77,520
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…
Chapter 21 Solutions
Financial And Managerial Accounting
Ch. 21 - What types of costs are customarily included in...Ch. 21 - Which type of manufacturing cost (direct...Ch. 21 - Which of the following costs would be included in...Ch. 21 - In the variable costing income statement, how are...Ch. 21 - The manager of a company are planning to...Ch. 21 - Since all costs of operating a business are...Ch. 21 - Discuss how financial data prepared on the basis...Ch. 21 - Why might management analyze product...Ch. 21 - Explain why rewarding sales personnel on the basis...Ch. 21 - Explain why service companies use different...
Ch. 21 - Variable costing Marley Company has the following...Ch. 21 - Variable costingproduction exceeds sales Fixed...Ch. 21 - Variable costingsales exceed production The...Ch. 21 - Analyzing income under absorption and variable...Ch. 21 - Contribution margin by segment The following...Ch. 21 - At the end of the first year of operations, 21,500...Ch. 21 - Gallatin County Motors Inc. assembles and sells...Ch. 21 - Fresno Industries Inc. manufactures and sells...Ch. 21 - On March 31, the end of the first month of...Ch. 21 - On April 30, the end of the first month of...Ch. 21 - On October 31, the end of the first month of...Ch. 21 - The following data were adapted from a recent...Ch. 21 - Estimated income statements, using absorption and...Ch. 21 - The following data were adapted from a recent...Ch. 21 - How is the quantity factor for an increase or a...Ch. 21 - Explain why service companies use different...Ch. 21 - Galaxy Sports Inc. manufactures and sells two...Ch. 21 - Prob. 13ECh. 21 - Sales territory and salesperson profitability...Ch. 21 - Prob. 15ECh. 21 - Prob. 16ECh. 21 - Variable costing income statement for a service...Ch. 21 - Variable costing income statement for a service...Ch. 21 - Absorption and variable costing income statements...Ch. 21 - Prob. 2PACh. 21 - During the first month of operations ended May 31,...Ch. 21 - Salespersons report and analysis Walthman...Ch. 21 - Segment variable costing income statement and...Ch. 21 - Absorption and variable costing income statements...Ch. 21 - Income statements under absorption costing and...Ch. 21 - Absorption and variable costing income statements...Ch. 21 - Salespersons report and analysis Pachec Inc....Ch. 21 - Prob. 5PBCh. 21 - Comcast Corporation (CMCSA) is a global media and...Ch. 21 - Prob. 2MADCh. 21 - Prob. 3MADCh. 21 - Segment disclosure by Apple Inc. (AAPL) provides...Ch. 21 - Prob. 1TIFCh. 21 - Inventory effects under absorption costing BendOR,...Ch. 21 - Communication Bon Jager Inc. manufactures and...Ch. 21 - Data for the last fiscal year for Merlene Company...Ch. 21 - Chassen Company, a cracker and cookie...Ch. 21 - Mill Corporation had the following unit costs for...Ch. 21 - Bethany Company has just completed the first month...
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