Business, 24.07.2020 21:01 babyduckies37
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 sold 36 24 40 60
Manufacturing margin ratio 40% 50% 40% 50%
Required:
a. Prepare a contribution margin by salesperson report. Calculate the contribution margin ratio for each salesperson.
b. Prepare a contribution margin by territory report. Calculate the contribution margin for each territory, rounded to one decimal place.
Answers: 3
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