Tavaris Instruments Company employs seven salespersons to sell and distribute its product throughout the state. Data taken

Question:

Tavaris Instruments Company 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, 2012, are as follows:

Variable Selling Expenses Total Sales Variable Cost of Goods Sold Salesperson Ainge $560,000 $308,000 $112,000 Brohm 310

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 whole percents to a single digit.
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.

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...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial and Managerial Accounting Using Excel for Success

ISBN: 978-1111993979

1st edition

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

Question Posted: