Reference no: EM132685979

Problem - Salespersons Report and Analysis

Tavaris Instruments Company 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, 2012, are as follows:

Salesperson	Total Sales	Variable Cost of Goods Sold	Variable Selling Expenses
Ainge Brohm Carr Harrell Losman Null Skelton	$560,000 565,000 460,000 510,000 530,000 695,000 500,000	$308,000 310,750 234,600 188,700 259,700 236,300 245,000	$112,000 124,300 82,800 102,000 100,700 118,150 100,000

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 percents to a single digit.

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.