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:
Salesperson
Total
Sales
Variable Cost
of Goods Sold Variable
Selling
Expenses
Asarenka $437,500 $196,875 $83,125
Crowell 570,000 228,000 91,200
Dempster 675,000 310,500 141,750
MacLean 587,500 246,750 123,375
Ortiz 525,000 215,250 126,000
Sullivan 587,500 246,750 99,875
Williams 575,000 253,000 115,000
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.
Pachec Inc.
Salespersons' Analysis
For the Year Ended June 30
Salesperson Contribution Margin Variable Cost of Goods Sold as a Percent of Sales Variable Selling Expenses as a Percent of Sales Contribution Margin Ratio
Asarenka $ % % %
Crowell % % %
Dempster % % %
MacLean % % %
Ortiz % % %
Sullivan % % %
Williams % % %
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.
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