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Hi, please assist me with this difficult question, I'm struggling to understand to whole question... Omega Medical Supplies Pte Ltd (OMS) is a small but
Hi, please assist me with this difficult question, I'm struggling to understand to whole question...
Omega Medical Supplies Pte Ltd (OMS) is a small but growing manufacturer of medical equipment. Due to its small set-up, the company does not have a sales force of its own, but relies entirely on independent sales agents to market its products.
The independent sales agents are paid a commission of 15% of sales. This is reflected in the budget for the new financial year ending 31 December 2022, as follows:
Sales Cost of goods sold Variable Fixed Gross prot Selling, general and administrative expenses Agents' commissions Fixed advertising expenses Fixed general and administrative expenses Prot before interest and taxes Fixed interest expense Prot before taxes Tax expense Prot after tax ($'000) 7,200 2,340 2,400 120 1,800 ($000) 1 6,000 9,540 6,460 4,320 2,140 540 1,600 272 1,328 Salaries of sales team Sales manager Sales persons Travel and entertainment Advertising and promotion ($'000) 1 00 600 400 l ,300 2,400Step by Step Solution
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