Financial And Managerial Accounting
15th Edition
ISBN: 9781337902663
Author: WARREN, Carl S.
Publisher: Cengage Learning,
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Textbook Question
Chapter 21, Problem 4PA
Salespersons’ report and analysis
Walthman Industries 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 December 31 are as follows:
Instructions
- 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 percent to one digit after decimal point.)
- 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.
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Walthman Industries 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 December 31 are as follows:
Salesperson
TotalSales
Variable Costof Goods Sold
VariableSellingExpenses
Case
$610,000
Â
$268,400
Â
$109,800
Â
Dix
603,000
Â
241,200
Â
96,480
Â
Johnson
588,000
Â
305,760
Â
105,840
Â
LaFave
586,000
Â
281,280
Â
123,060
Â
Orcas
616,000
Â
221,760
Â
86,240
Â
Sussman
620,000
Â
310,000
Â
124,000
Â
Willbond
592,000
Â
272,320
Â
88,800
Â
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.
Walthman Industries Inc.
Salespersons' Analysis
For the Year Ended December 31
Salesperson
Contribution Margin
Variable Cost of…
Walthman Industries 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 December
31 are as follows:
Total
Sales
Variable Cost
of Goods Sold
Variable
Selling
Expenses
Salesperson
Case
$610,000
$268,400
$109,800
Dix
603,000
241,200
96,480
Johnson
588,000
305,760
105,840
LaFave
586,000
281,280
123,060
Orcas
616,000
221,760
86,240
Sussman
620,000
310,000
124,000
Willbond
592,000
272,320
88,800
Instructions
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 percent.
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.
Walthman Industries 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 December 31 are as follows:
Salesperson
Total Sales
Variable Cost of Goods Sold
Variable Selling Expenses
Case
$349,000
Â
$115,170
Â
Â
$69,800
Â
Â
Dix
346,000
Â
138,400
Â
Â
55,360
Â
Â
Johnson
588,000
Â
217,560
Â
Â
76,440
Â
Â
LaFave
533,000
Â
202,540
Â
Â
90,610
Â
Â
Orcas
557,000
Â
245,080
Â
Â
72,410
Â
Â
Sussman
344,000
Â
196,080
Â
Â
72,240
Â
Â
Willbond
408,000
Â
159,120
Â
Â
61,200
Â
Â
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.
Waltham Industries Inc.
Salespersons' Analysis
For the Year Ended December 31
Salesperson…
Chapter 21 Solutions
Financial And Managerial Accounting
Ch. 21 - What types of costs are customarily included in...Ch. 21 - Which type of manufacturing cost (direct...Ch. 21 - Which of the following costs would be included in...Ch. 21 - In the variable costing income statement, how are...Ch. 21 - The manager of a company are planning to...Ch. 21 - Since all costs of operating a business are...Ch. 21 - Discuss how financial data prepared on the basis...Ch. 21 - Why might management analyze product...Ch. 21 - Explain why rewarding sales personnel on the basis...Ch. 21 - Explain why service companies use different...
Ch. 21 - Variable costing Marley Company has the following...Ch. 21 - Variable costingproduction exceeds sales Fixed...Ch. 21 - Variable costingsales exceed production The...Ch. 21 - Analyzing income under absorption and variable...Ch. 21 - Contribution margin by segment The following...Ch. 21 - At the end of the first year of operations, 21,500...Ch. 21 - Gallatin County Motors Inc. assembles and sells...Ch. 21 - Fresno Industries Inc. manufactures and sells...Ch. 21 - On March 31, the end of the first month of...Ch. 21 - On April 30, the end of the first month of...Ch. 21 - On October 31, the end of the first month of...Ch. 21 - The following data were adapted from a recent...Ch. 21 - Estimated income statements, using absorption and...Ch. 21 - The following data were adapted from a recent...Ch. 21 - How is the quantity factor for an increase or a...Ch. 21 - Explain why service companies use different...Ch. 21 - Galaxy Sports Inc. manufactures and sells two...Ch. 21 - Prob. 13ECh. 21 - Sales territory and salesperson profitability...Ch. 21 - Prob. 15ECh. 21 - Prob. 16ECh. 21 - Variable costing income statement for a service...Ch. 21 - Variable costing income statement for a service...Ch. 21 - Absorption and variable costing income statements...Ch. 21 - Prob. 2PACh. 21 - During the first month of operations ended May 31,...Ch. 21 - Salespersons report and analysis Walthman...Ch. 21 - Segment variable costing income statement and...Ch. 21 - Absorption and variable costing income statements...Ch. 21 - Income statements under absorption costing and...Ch. 21 - Absorption and variable costing income statements...Ch. 21 - Salespersons report and analysis Pachec Inc....Ch. 21 - Prob. 5PBCh. 21 - Comcast Corporation (CMCSA) is a global media and...Ch. 21 - Prob. 2MADCh. 21 - Prob. 3MADCh. 21 - Segment disclosure by Apple Inc. (AAPL) provides...Ch. 21 - Prob. 1TIFCh. 21 - Inventory effects under absorption costing BendOR,...Ch. 21 - Communication Bon Jager Inc. manufactures and...Ch. 21 - Data for the last fiscal year for Merlene Company...Ch. 21 - Chassen Company, a cracker and cookie...Ch. 21 - Mill Corporation had the following unit costs for...Ch. 21 - Bethany Company has just completed the first month...
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- Salespersons' Report and Analysis Walthman Industries 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 December 31 are as follows: Salesperson Total Sales Variable Cost of Goods Sold Variable Selling Expenses Case $549,000  $181,170   $115,290   Dix 615,000  344,400   79,950   Johnson 458,000  224,420   59,540   LaFave 471,000  235,500   84,780   Orcas 444,000  186,480   66,600   Sussman 516,000  237,360   67,080   Willbond 456,000  164,160   77,520   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. Waltham Industries Inc. Salespersons' Analysis For the Year Ended…arrow_forwardSalespersons' Report and Analysis Walthman Industries 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 December 31 are as follows: Salesperson Total Sales Variable Cost of Goods Sold Variable Selling Expenses Case $429,000  $184,470   $90,090   Dix 417,000  212,670   58,380   Johnson 465,000  195,300   102,300   LaFave 585,000  204,750   87,750   Orcas 418,000  229,900   66,880   Sussman 407,000  215,710   85,470   Willbond 580,000  191,400   127,600   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. Waltham Industries Inc. Salespersons' Analysis For the Year Ended…arrow_forwardSalespersons' Report and Analysis Walthman Industries 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 December 31 are as follows: Salesperson Total Sales Variable Cost of Goods Sold Variable Selling Expenses $115,940 135,000 279,790 236,340 283,040 282,150 264,150 Case Dix Johnson LaFave Orcas Sussman Willbond 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. Salesperson Contribution Margin Case Dix Johnson LaFave Orcas $341,000 375,000 571,000 606,000 488,000 627,000 587,000 Sussman Willbond $ $51,150 75,000 108,490 84,840 78,080 112,860 105,660 Waltham Industries Inc. Salespersons' Analysis For the Year Ended December 31 Variable…arrow_forward
- Salespersons' Report and Analysis Walthman Industries 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 December 31 are as follows: Salesperson Total Sales Variable Cost of Goods Sold Variable Selling Expenses Case $372,000  $197,160   $70,680   Dix 566,000  277,340   113,200   Johnson 594,000  308,880   118,800   LaFave 344,000  172,000   51,600   Orcas 346,000  110,720   58,820   Sussman 559,000  318,630   72,670   Willbond 395,000  134,300   75,050   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. Waltham Industries Inc.Salespersons' AnalysisFor the Year Ended December 31…arrow_forwardSalespersons' Report and Analysis Walthman Industries 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 December 31 are as follows: Salesperson Total Sales Variable Cost of Goods Sold Variable Selling Expenses Case $581,000 $284,690 $122,010 Dix 576,000 247,680 92,160 Johnson 587,000 246,540 129,140 LaFave 461,000 207,450 96,810 Orcas 525,000 194,250 84,000 Sussman 492,000 241,080 78,720 Willbond 426,000 187,440 55,380 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. Waltham Industries Inc. Salespersons' Analysis For the Year Ended December 31 Variable Cost of Goods Variable Selling Expenses Contribution Margin Salesperson Contribution…arrow_forwardSalespersons' Report and Analysis Walthman Industries 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 December 31 are as follows: Salesperson Total Sales Variable Cost of Goods Sold Variable Selling Expenses Case $514,000 $246,720 $92,520 Dix 380,000 148,200 68,400 Johnson 455,000 209,300 86,450 LaFave 531,000 297,360 106,200 226,800 88,200 Orcas 630,000 219,520 89,600 Sussman 448,000 355,000 198,800 006 Willbond Required:arrow_forward
- Salespersons' Report and Analysis Walthman Industries 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 December 31 are as follows: Salesperson Total Sales Variable Cost of Goods Sold Variable Selling Expenses Case $424,000  $233,200   $80,560   Dix 371,000  178,080   63,070   Johnson 469,000  262,640   75,040   LaFave 586,000  334,020   111,340   Orcas 538,000  199,060   91,460   Sussman 529,000  185,150   116,380   Willbond 569,000  216,220   91,040   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. Waltham Industries Inc.Salespersons' AnalysisFor the Year Ended December 31…arrow_forwardSalespersons' Report and Analysis Walthman Industries 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 December 31 are as follows: Salesperson Total Sales Variable Cost of Goods Sold Variable Selling Expenses Case $424,000 $233,200 $80,560      Dix 371,000 178,080 63,070      Johnson 469,000 262,640 75,040      LaFave 586,000 334,020 111,340      Orcas 538,000 199,060 91,460      Sussman 529,000 185,150 116,380      Willbond 569,000 216,220 91,040      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. Waltham Industries Inc.Salespersons' AnalysisFor the Year Ended December 31…arrow_forwardSalespersons' 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: Variable Total Variable Cost Selling Salesperson Sales of Goods Sold Expenses Asarenka $437,500 $196,875 $83,125 Crowell 570,000 228,000 91,200 Dempster 141,750 675,000 310,500 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.arrow_forward
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