Reyes Industries Inc. manufactures and sells a variety of commercial vehicles in the North east and South

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Reyes Industries Inc. manufactures and sells a variety of commercial vehicles in the North east and South west regions. There are two salespersons assigned to each territory. Higher commission rates go to the most experienced salespersons. The following sales statistics are available for each salesperson:

Reyes Industries Inc. manufactures and sells a variety of commercial

a. 1. Prepare a contribution margin by salesperson report. Calculate the contribution margin ratio for each salesperson.
2. Interpret the report.
b. 1. Prepare a contribution margin by territory report. Calculate the contribution margin for each territory as a whole percent, rounded to one decimal place.
2. Interpret thereport.

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
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Financial and Managerial Accounting

ISBN: 978-1285078571

12th edition

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

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