1. Develop a profitability analysis by salesperson based on the model of Exhibit 12.12 in the textbook.

Takamatsu Sports is a Japanese sporting goods company based in Osaka, Japan, that manufactures and sells tennis equipment. It sells three different tennis racquets: the Nomo, the Ichiro, the Matsui. The company experienced a loss last year for the first time, and founder and CEO Hiroshi Takamatsu is interested in analyzing the company’s financial data to determine a cause for the loss. Takamatsu’s profit and loss statement for last year is as follows:

Mr. Takamatsu decided to do a cost analysis with the purpose of determining the profitability of the three sales representatives. He then allocated natural accounts to functional accounts as follows:

He then gathered the following sales data to use in the profitability analysis:

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Sales Cost of goods sold Gross margin Profit and Loss Statement for Takamatsu Sports (in USD) Selling and administrative expenses Salaries Commissions Advertising $156,000 22,534 176,890 $2,253,370 1,754,630 $498,770 Postage and office supplies 342 Packaging materials 20,527 Transportation charges 51,318 Travel expenses 42,000 Rent 120,000 Total selling and administrative expenses 589,611 Net profit (loss) ($90,871)