Dodd Inc. manufactures and sells devices used in cardiovascular surgery. The company has two salespersons, Warner and Queen. A contribution margin by salesperson report was prepared as follows:

Interpret the report, and provide recommendations to the two salespersons for improvingprofitability.

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Dodd Inc. Contribution Margin by Salesperson Warner Queen Sales Variable cost of goods sold Manufacturing margin Variable promotion expenses Variable sales commission expenses... -26,400 $220,000 $250,000 150,000 -...-..-- $132,000 $100,000 S 61,600 20,000 30,000 88,000 50,000 S 44,000 50,000 88,000 Contribution margin Manufacturing margin as a percent of sales (manufacturing margin ratio) Contribution margin ratio ..---.... - 60% 20% 40% 20%