Can someone give me solution for this question
GLOBAL LTD. is engaged in marketing of wide range of consumer goods. A, B, C and D are the zonal sales officers for four zones. The company fixes annual sales target for them individually. You are furnished with the following:
(1) The standard costs of sales target in respect of A, B, C and D are 5,00,000, 3,75,000, 4,00,000 and 4,25,000 respectively.
(2) A, B, C and D respectively earned ` 29,900, ` 23,500, ` 24,500 and ` 25,800 as commission at 5% on actual sales effected by them during the previous year.
(3) The relevant variances as computed by a qualified cost accountant are as follows:
A B C D
Sales price variance 4,000 (F) 6,000 (A) 5,000 (A) 2,000 (A)
Sales volume variance 6,000 (A) 26,000 (F) 15,000 (F) 8,000 (F)
Sales margin mix variance 14,000 (A) 8,000 (F) 17,000 (F) 3,000 (A)
(A) = Adverse variance and (F) = Fabourable variance.
You are required to:
(1) Compute the amount of sales target fixed and the actual amount of contribution earned in case of each of the zonal sales officer.
(2) Evaluate the overall performance of these zonal sales officers taking three relevant base factors and then recommend whose performance is the best.
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