4-2 MAYFIELD SOFTWARE, CUSTOMER TRAINING

Marie Stefano is the group director of customer training for Mayfield Software. In this capacity, she runs a center in Kirkland, Washington, that provides training to employees of companies that use Mayfield's inventory control, customer management, and accounting software products. Her group employs a receptionist and an office manager/bookkeeper, and she has arrangements with several part-time trainers who are hired on an as-needed basis. (They are all retired employees of Mayfield Software.) Trainers are paid $4,000 per daylong class. Mayfield is a decentralized company, and Marie is given considerable authority to advertise and conduct classes as she sees fit.

Report of Operating Results, 2016 Revenue 6,120,000 Less operating costs: Trainer costs 3,400,000 Director salary 180,000 a P o o o Receptionist Ofce manager Utilities, phone, etc. Lease expense related to computers, servers, etc. Rent Operating manuals for participants 80,000 38,000 400,000 100,000 510,000 Postage, envelopes, paper, etc. 12,750 160,000 Advertising Total operating costs 4,949,259 1,179,250 1,2_24,000 ($ 44,750) Prot before central charges Central charges Group prot