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Marston Corporation manufactures disposable thermometers that are sold to hospitals through a network of independent sales agents located in the United States and Canada.
Marston Corporation manufactures disposable thermometers that are sold to hospitals through a network of independent sales agents located in the United States and Canada. These sales agents sell a variety of products to hospitals in addition to Marston's disposable thermometer. The sales agents are currently paid an 18% commission on sales, and this commission rate was used when Marston's management prepared the following budgeted income statement for the upcoming year Marston Corporation Budgeted Income Statement Sales . Cost of goods sold: Variable Fixed Gross margin . Selling and administrative expenses: Commissions . Fixed advertising expense . Fixed administrative expense . Net operating income. 20,200.000 $ 400.000
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