Responsibility Accounting for a Sales Territory.
Melanie Rosenzweig manages the Eastern Sales Territory for the Salamander Corporation. She has fifteen salesmen working for her, and she has a small office staff. All expense accounts of the salesmen and all expenses of the Eastern Sales Territory must have her approval before they are paid. Sales for August were $250,000. The following list of expenses for August came to her office from the corporate headquarters:
Cost ofigoodsisoldww.. ta) axl baatennaBe e $ 190,000 SAIESINCIE SALARIES. 5s desd icue ss ‘sia cel ong aie ove apa 35,000 Territory office mente. 2905282 8H2e, 5,000 Dare SINetCXDCISCS fy occ vrs tiv a etn aus Tees 3,000 Corporate accounting cost* ................ 4,000 GED OTALE OV ELC AG is e057 0's)5 Gauge Wiaaere gsi 2,000 Potable Tae. cies Sonne, naavetatt.S $ 239,000 * — Corporate cost allocated to territories on the basis of total sales.
** Corporate cost allocated to territories on the basis of the number of employees in the territory Required:
Compute the amount that Melanie Rosenzweig contributed to cover other company costs and profit for August. Use only the expenses in her report that required her approval before they were paid.LO.1