Scottish Industries, Inc. manufactures and sells a variety of commercial vehicles to manufactures in the East and

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Scottish Industries, Inc. manufactures and sells a variety of commercial vehicles to manufactures in the East and 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:



Scottish Industries, Inc. manufactures and sells a variety of co


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 the report.

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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Managerial Accounting

ISBN: b010ikdqzm

10th Edition

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

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