Question

Salespersons' Report and Analysis

Pachec Inc. employs seven salespersons to sell and distribute its product throughout the state. Data taken from reports received from the salespersons during the year ended June 30 are as follows:

Salesperson	Total Sales		Variable Cost of Goods Sold		Variable Selling Expenses
Asarenka	$437,500		$196,875		$83,125
Crowell	570,000		228,000		91,200
Dempster	675,000		310,500		141,750
MacLean	587,500		246,750		123,375
Ortiz	525,000		215,250		126,000
Sullivan	587,500		246,750		99,875
Williams	575,000		253,000		115,000

Required:

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 percents to the nearest whole number. Enter all amounts as positive numbers.

Pachec Inc.
Salespersons' Analysis
For the Year Ended June 30
Salesperson	Contribution Margin	Variable Cost of Goods Sold as a Percent of Sales	Variable Selling Expenses as a Percent of Sales	Contribution Margin Ratio
Asarenka	$	%	%	%
Crowell		%	%	%
Dempster		%	%	%
MacLean		%	%	%
Ortiz		%	%	%
Sullivan		%	%	%
Williams		%	%	%

2. Which salesperson generated the highest contribution margin ratio for the year?

3. Identify the factors other than contribution margin that should be considered in evaluating the performance of salespersons.

Rate of growth in sales for the current year compared with past years

Years of experience for salespersons

Size of sales territory

Actual sales compared with budgeted sales

All of the above

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