Question
Hockey Sticks 'n Helmets is a $16 million company with 1 president and the following number of sales reps in these two territories: -Eastern U.S.
Hockey Sticks 'n Helmets is a $16 million company with 1 president and the following number of sales reps in these two territories: -Eastern U.S. ($12 million in sales, 9 reps) -Western U.S. ($4 million in sales, 4 reps)
The company sells two types of products (and each rep sells both products): -Hockey sticks ($10 million in sales) and -Hockey helmets ($6 million in sales).
And you can assume that the following list contains information on all other costs for this company:
- Each rep is paid a straight salary of $80,537
- The company president is paid a salary of $192,727
- They recently spent $197,146 for a national TV ad which focused on hockey sticks only (not helmets).
- Cost of goods sold is exactly 1/2 of sales (i.e., 50%)
Do a full cost analysis, allocate indirect costs as a percent of sales, in order to calculate the net profit of the Eastern U.S. territory. Round to the nearest dollar amount.
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