The Excelsior Company Has Three Salespersons

question 136

Essay

The 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:
Prepare a contribution by salesperson report.

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Definitions:

Break-Even Point

The financial state where total costs equal total revenues, resulting in no net loss or gain for the business.

Variable Costs

Spendings that move in tandem with the level of output or number of sales.

Sales Dollars

The total revenue generated from the sale of goods or services before any expenses are deducted.

Break-Even Point

The production level or sales volume at which total revenues equal total expenses, resulting in no net loss or gain.