Question
In: Accounting
Sales Territory and Salesperson Profitability Analysis Havasu Off-Road Inc. manufactures and sells a variety of commercial...
Sales Territory and Salesperson Profitability Analysis
Havasu Off-Road Inc. manufactures and sells a variety of commercial vehicles in the Northeast and Southwest 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:
| Northeast | Southwest | |||||||
| Rene | Steve | Colleen | Paul | |||||
| Average per unit: | ||||||||
| Sales price | $14,000 | $16,000 | $8,900 | $18,300 | ||||
| Variable cost of goods sold | $8,400 | $8,960 | $5,696 | $8,052 | ||||
| Commission rate | 7% | 14% | 12% | 9% | ||||
| Units sold | 30 | 27 | 38 | 46 | ||||
| Manufacturing margin ratio | 40% | 44% | 36% | 56% | ||||
a. 1. Prepare a contribution margin by salesperson report. Calculate the contribution margin ratio for each salesperson. If required, round contribution margin ratio to one decimal place.
| Havasu Off-Road Inc. | ||||
| Contribution Margin by Salesperson | ||||
| Rene | Steve | Colleen | Paul | |
| $ | $ | $ | $ | |
| $ | $ | $ | $ | |
| $ | $ | $ | $ | |
| Contribution margin ratio | % | % | % | % |
a. 2. Interpret the report.
Paul earns the contribution margin and has the contribution margin ratio. This is because he sells the units, has a commission rate, and sells a product mix with a manufacturing margin. Steve also sells products with a average manufacturing margin but at a commission rate. Colleen has the contribution margin ratio among the four salespersons. Although Rene has a high variable cost of goods sold and also sells products with a average sales price per unit, she has the second total contribution margin.
b. 1. Prepare a contribution margin by territory report. Calculate the contribution margin for each territory as a percent, rounded to one decimal place.
| Havasu Off-Road Inc. | ||
| Contribution Margin by Territory | ||
| Northeast | Southwest | |
| $ | $ | |
| $ | $ | |
| $ | $ | |
| Contribution margin ratio | % | % |
b. 2. Interpret the report.
The Southwest Region has $ more sales and $ more contribution margin. In the Southwest Region, the salesperson with the highest sales unit volume, has the contribution margin ratio. The Southwest Region has the performance, even though it also has the salesperson with the contribution margin and contribution margin ratio. The Northeast Region contribution margin is than the Southwest Region because of the outstanding performance of .
Check My Work
Previous
Nex
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Sales Territory and Salesperson Profitability Analysis Havasu Off-Road Inc. manufactures and sells a variety of commercial...
Sales Territory and Salesperson Profitability Analysis
Havasu Off-Road Inc. manufactures and sells a variety of
commercial vehicles in the Northeast and Southwest 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:
Northeast
Southwest
Rene
Steve
Colleen
Paul
Average per unit:
Sales price
$15,500
$16,000
$14,000
$18,000
Variable cost of goods sold
$9,300
$8,000
$8,400
$9,000
Commission rate
8%
12%
10%
8%
Units...
Sales Territory and Salesperson Profitability Analysis Havasu Off-Road Inc. manufactures and sells a variety of commercial...
Sales Territory and Salesperson Profitability Analysis
Havasu Off-Road Inc. manufactures and sells a variety of
commercial vehicles in the Northeast and Southwest 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:
Northeast
Southwest
Rene
Steve
Colleen
Paul
Average per unit:
Sales price
$13,900
$15,300
$8,500
$18,400
Variable cost of goods sold
$8,340
$8,262
$5,270
$8,096
Commission rate
7%
14%
12%
9%
Units...
Sales Territory and Salesperson Profitability Analysis Havasu Off-Road Inc. manufactures and sells a variety of commercial...
Sales Territory and Salesperson Profitability Analysis
Havasu Off-Road Inc. manufactures and sells a variety of
commercial vehicles in the Northeast and Southwest 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:
Northeast
Southwest
Rene
Steve
Colleen
Paul
Average per unit:
Sales price
$15,500
$16,000
$14,000
$18,000
Variable cost of goods sold
$9,300
$8,000
$8,400
$9,000
Commission rate
8%
12%
10%
8%
Units...
Havasu Off-Road Inc. manufactures and sells a variety of commercial vehicles in the Northeast and Southwest regions.
Could you please explain step by step how to resolve this
problem? thank you
Sales Territory and Salesperson Profitability Analysis
Havasu Off-Road Inc. manufactures and sells a variety of
commercial vehicles in the Northeast and Southwest 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:
Northeast
Southwest
Rene
Steve
Colleen
Paul
Average per unit:
Sales price
$15,500
$16,000
$14,000
$18,000
Variable cost...
Territory and Product Profitability Analysis Coast to Coast Surfboards Inc. manufactures and sells two styles of...
Territory and Product Profitability Analysis
Coast to Coast Surfboards Inc. manufactures and sells two styles
of surfboards, Atlantic Wave and Pacific Pounder. These surfboards
are sold in two regions, East Coast and West Coast. Information
about the two surfboards is as follows:
Atlantic Waves
Pacific Pounder
Sales price
$200
$120
Variable cost of goods sold per unit
150
90
Manufacturing margin per unit
$50
$30
Variable selling expense per unit
34
16
Contribution margin per unit
$16
$14
The sales...
Territory and Product Profitability Analysis Coast to Coast Surfboards Inc. manufactures and sells two styles of...
Territory and Product Profitability Analysis
Coast to Coast Surfboards Inc. manufactures and sells two styles
of surfboards, Atlantic Wave and Pacific Pounder. These surfboards
are sold in two regions, East Coast and West Coast. Information
about the two surfboards is as follows:
Atlantic Wave
Pacific Pounder
Sales price
$223
$158
Variable cost of goods sold per unit
88
88
Manufacturing margin per unit
$135
$70
Variable selling expense per unit
120
60
Contribution margin per unit
$15
$10
The sales...
Territory and Product Profitability Analysis Coast to Coast Surfboards Inc. manufactures and sells two styles of...
Territory and Product Profitability Analysis
Coast to Coast Surfboards Inc. manufactures and sells two styles
of surfboards, Atlantic Wave and Pacific Pounder. These surfboards
are sold in two regions, East Coast and West Coast. Information
about the two surfboards is as follows:
Atlantic Wave
Pacific Pounder
Sales price
$350
$300
Variable cost of goods sold per unit
(130)
(138)
Manufacturing margin per unit
$220
$162
Variable selling expense per unit
(157)
(84)
Contribution margin per unit
$63
$78
The sales...
Territory and Product Profitability Analysis Coast to Coast Surfboards Inc. manufactures and sells two styles of...
Territory and Product Profitability Analysis
Coast to Coast Surfboards Inc. manufactures and sells two styles
of surfboards, Atlantic Wave and Pacific Pounder. These surfboards
are sold in two regions, East Coast and West Coast. Information
about the two surfboards is as follows:
Atlantic Wave
Pacific Pounder
Sales price
$300
$250
Variable cost of goods sold per unit
(111)
(123)
Manufacturing margin per unit
$189
$127
Variable selling expense per unit
(135)
(57)
Contribution margin per unit
$54
$70
The sales...
Territory and Product Profitability Analysis Coast to Coast Surfboards Inc. manufactures and sells two styles of...
Territory and Product Profitability Analysis
Coast to Coast Surfboards Inc. manufactures and sells two styles
of surfboards, Atlantic Wave and Pacific Pounder. These surfboards
are sold in two regions, East Coast and West Coast. Information
about the two surfboards is as follows:
Atlantic Wave
Pacific Pounder
Sales price
$300
$200
Variable cost of goods sold per unit
111
98
Manufacturing margin per unit
$189
$102
Variable selling expense per unit
117
62
Contribution margin per unit
$72
$40
The sales...
Territory and Product Profitability Analysis Zen Skateboards, Inc., manufactures and sells two styles of skateboards, Street...
Territory and Product Profitability Analysis
Zen Skateboards, Inc., manufactures and sells two styles of
skateboards, Street Machine and Winter Warrior. These skateboards
are sold in two regions, Southern Coast and Northern Coast.
Information about the two skateboards is as follows:
Street Machine
Winter Warrior
Sales price
$400
$350
Variable cost of goods sold per unit
148
161
Manufacturing margin per unit
$252
$189
Variable selling expense per unit
156
105
Contribution margin per unit
$96
$84
The sales unit volume...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- •Use commented pseudo-code to describe a process for each of the following: 1)Assigning a shopper to...
- What are the objectives of budgeting? What are some of the advantages of an effective budgeting...
- Kelson Sporting Equipment, Inc., makes two different types of baseball gloves: a regular model and a...
- Write in Python and as 2 seperate programs Write a program that allows the user to...
- Asymptotic Notation. (a) [10 pts.] Prove that n3 −91n2 −7n−14 = Ω(n3). Your answer must clearly...
- Prepare ONE Page reflection to the readings of the Perceptual Process incorporating as well one outside...
- How is the internet affecting our everyday life? I just need a rough draft for this...
ADVERTISEMENT