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b. Depreciation on the offices and equipment is $20,900 per year. c. Office supplies and other expenses total $23,550 per year. e. Commissions on the
b. Depreciation on the offices and equipment is $20,900 per year. c. Office supplies and other expenses total $23,550 per year. e. Commissions on the Sleepeze and Plushette lines are 3 percent of sales. These commissions are paid to independent jobbers who sell the mattresses to retail stores. Suppose that Gene is considering three sales scenarios as follows: Suppose Gene determines that next year's Sales Division activities include the following: Research-researching current and future conditions in the industry Shipping-arranging for shipping of mattresses and handling calls from purchasing agents at retail stores to trace shipments and correct errors Jobbers-coordinating the efforts of the independent jobbers who sell the mattresses Basic ads-placing print and television ads for the Sleepeze and Plushette lines Ultima ads-choosing and working with the advertising agency on the Ultima account office management-operating the Sales Division office The percentage of time spent by each employee of the Sales Division on each of the above activities is given in the following table: 2. On the basis of the budget prepared in Requirement 1 , advise Gene regarding actions that might be taken to reduce expenses. b. Depreciation on the offices and equipment is $20,900 per year. c. Office supplies and other expenses total $23,550 per year. e. Commissions on the Sleepeze and Plushette lines are 3 percent of sales. These commissions are paid to independent jobbers who sell the mattresses to retail stores. Suppose that Gene is considering three sales scenarios as follows: Suppose Gene determines that next year's Sales Division activities include the following: Research-researching current and future conditions in the industry Shipping-arranging for shipping of mattresses and handling calls from purchasing agents at retail stores to trace shipments and correct errors Jobbers-coordinating the efforts of the independent jobbers who sell the mattresses Basic ads-placing print and television ads for the Sleepeze and Plushette lines Ultima ads-choosing and working with the advertising agency on the Ultima account office management-operating the Sales Division office The percentage of time spent by each employee of the Sales Division on each of the above activities is given in the following table: 2. On the basis of the budget prepared in Requirement 1 , advise Gene regarding actions that might be taken to reduce expenses
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