Question
Balls n Bats is a $24 million company with 1 president and 10 sales reps in these two territories: Northern U.S. ($16 million in sales,
Balls n Bats is a $24 million company with 1 president and 10 sales reps in these two territories: Northern U.S. ($16 million in sales, 7 reps), Southern U.S. ($8 million in sales, 3 reps). The company sells two different products (and each rep sells both): -Balls ($18 million in sales) and -Bats ($6 million in sales).
And you can assume that the following list contains information on all costs for this company: Each rep is paid a straight salary of $60,000 The company president is paid a salary of $200,000 They recently ran a national TV ad for balls, which cost $300,000;
And then separately they ran a national TV ad for bats, which cost $100,000 Cost of goods sold is exactly 75% of sales
Based on a full cost analysis that allocates indirect costs using % of sales, how much of the company profit is generated by the Southern US territory? Enter dollar amount.
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