Question

Excelsior Company has three salespersons. Average sales price per unit sold, average variable manufacturing costs per unit, and number of units sold for each salesperson are shown below.

Commissions are earned according to the following schedule:

Total Sales		Percentage
$0 to 49,999		6%
$50,000 to $52,999		7%
Over $53,000		8%

Salesperson		Mary Q.		John A.		Susan B.
Avg. selling price per unit		$50.00		$65.00		$45.00
Avg. var. mfg. costs per unit		25.00		30.00		35.00
Number of units sold		1,000		750		1,200

1. Prepare a contribution by salesperson report.

   Excelsior Company
   Contribution Margin by Salesperson
   For the Month Ended XX/XX/XXXX
   Salesperson	Mary Q.	John A.	Susan B.
   Total sales	$	$	$
   Variable mfg. cost
   Manufacturing margin	$	$	$
   Commissions
   Contribution margin per salesperson	$	$	$

Answer 1

Excelsior Company
Contribution Margin by Salesperson
For the Month Ended XX/XX/XXXX
Salesperson	Mary Q.	John A.	Susan B.
Total Sales ($50 * 1,000); ($65 * 750); ($45 * 1,200)	$50,000	$48,750	$54,000
Less: Variable Manufacturing Cost ($25 * 1,000); ($30 * 750); ($35 * 1,200)	($25,000)	($22,500)	($42,000)
Manufacturing Margin	$25,000	$26,250	$12,000
Less: Commissions ($50,000*7/100); ($48,750*6/100); ($54,000*8/100)	($3,500)	($2,925)	($4,320)
Contribution margin per salesperson	$21,500	$23,325	$7,680