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Walthman Industries Inc, employs seven salespersons to sell and distribute its product throughout the state. Data taken from reports during the year ended December 31 are as follows: Salesperson Total Sales Variable Cost of Goods Sold Variable Selling Expenses Case $495,000 $277,200 $74,250 DIX 582,000 261,900 93,120 Johnson 568,000 272,640 73,840 LaFave 592,000 260,480 76,960 Orcas 460,000 248,400 64,400 Sussman 440,000 158,400 83,600 Willbond 439,000 219,500 83,410 Required: 1. Prepare a table indicating contribution margin, variable cost of goods sold as a percent of sales, variable selling expenses as a per 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 Contribution Margin Sold as a Percent of Sales Variable Cost of Goods Variable Selling Expenses Contribution Margin as a Percent of Sales Ratio Case % Dix % Johnson % 96 % % LaFave Orcas 9 Sussman % 9% Willbond % % 9% 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 1. Rate of growth in sales for the current year compared with past years 2. Years of experience for salespersons 3. Size of sales territory 4. Actual sales compared with budgeted sales 5. All of the above

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