I need questions 1 and 4. THANK YOU

transportation return on assets mana acca contrbution margin accounting activity-based costing (ABC) direct selling advertising warehousing and shipping (ROAM) BREAKOUT QUESTIONS al officer of marketing Cost of Gross ce, Broadways Aarper supports e by 50 Det who would Salaries . So d waiting como Adver Posta Supp Tras 1. "Our costs are out of control claimed Rosemary Harper, chief financial of Broadway United. "In particular, I am really concerned about the level of ma costs, especially for the sales force." With a 235-person sales force, Broadw computer hardware and software packages to financial institutions. Harper su the recommendations of a sales consulting firm to reduce the sales force by se cent and to hire a new "sales force" consisting of manufacturers' agents who be paid on a straight commission basis. The reduction in the sales force would that 10 district sales managers would lose their jobs. The sales training manager tion would be eliminated as well since manufacturers' agents do not need train according to the sales consultant. Harper intended to keep only the best sales and eliminate the others in the 50 percent reduction process. Those experience sales reps that remain with Broadway will not need enough training to justify keepin Broadway's training department," noted Harper. What are the advantages and disa vantages of the sales consultant's proposal? Is it possible for a company to cut coste too far? 2. Advertising has a synergistic effect. For example, in the Hurricane Performance Bicycle Company case, the $254,000 advertising expenditure for product A had a positive impact on products B and C and on the company as well. Besides, dollars spent in one period have a carryover effect to future periods. What recommendations would you make to handle these situations? 3. The Rite-Way Corporation, a manufacturer of a line of writing instruments, has com pleted a ROAM analysis for all products. The deluxe model in its line of fountain pens sells for $5.50 but produces a ROAM of 8.3 percent, well below the 23.5 percent average for the other products. Management believes rising raw material costs, such as gold and silver prices, are beyond Rite-Way's control. Should Rite-Way drop its deluxe product? Should Rite-Way eliminate commissions paid to sales representatives for deluxe sales? 4. The sales manager of Branch A (Exhibit 12.16) was dismayed with the results. The 20 percent ROAM for the branch was below expectations. The sales manager's response was "OK, they want better results, then we'll increase sales by at least 10 percent. But we'll have to cut prices by 5 percent to do this." Will this benefit Branch A? 5. Accounts receivable are too high for Branch A in Exhibit 12.16. One sales analyst recommends giving credit and collection responsibilities to the sales force. Sales reps transportation return on assets mana acca contrbution margin accounting activity-based costing (ABC) direct selling advertising warehousing and shipping (ROAM) BREAKOUT QUESTIONS al officer of marketing Cost of Gross ce, Broadways Aarper supports e by 50 Det who would Salaries . So d waiting como Adver Posta Supp Tras 1. "Our costs are out of control claimed Rosemary Harper, chief financial of Broadway United. "In particular, I am really concerned about the level of ma costs, especially for the sales force." With a 235-person sales force, Broadw computer hardware and software packages to financial institutions. Harper su the recommendations of a sales consulting firm to reduce the sales force by se cent and to hire a new "sales force" consisting of manufacturers' agents who be paid on a straight commission basis. The reduction in the sales force would that 10 district sales managers would lose their jobs. The sales training manager tion would be eliminated as well since manufacturers' agents do not need train according to the sales consultant. Harper intended to keep only the best sales and eliminate the others in the 50 percent reduction process. Those experience sales reps that remain with Broadway will not need enough training to justify keepin Broadway's training department," noted Harper. What are the advantages and disa vantages of the sales consultant's proposal? Is it possible for a company to cut coste too far? 2. Advertising has a synergistic effect. For example, in the Hurricane Performance Bicycle Company case, the $254,000 advertising expenditure for product A had a positive impact on products B and C and on the company as well. Besides, dollars spent in one period have a carryover effect to future periods. What recommendations would you make to handle these situations? 3. The Rite-Way Corporation, a manufacturer of a line of writing instruments, has com pleted a ROAM analysis for all products. The deluxe model in its line of fountain pens sells for $5.50 but produces a ROAM of 8.3 percent, well below the 23.5 percent average for the other products. Management believes rising raw material costs, such as gold and silver prices, are beyond Rite-Way's control. Should Rite-Way drop its deluxe product? Should Rite-Way eliminate commissions paid to sales representatives for deluxe sales? 4. The sales manager of Branch A (Exhibit 12.16) was dismayed with the results. The 20 percent ROAM for the branch was below expectations. The sales manager's response was "OK, they want better results, then we'll increase sales by at least 10 percent. But we'll have to cut prices by 5 percent to do this." Will this benefit Branch A? 5. Accounts receivable are too high for Branch A in Exhibit 12.16. One sales analyst recommends giving credit and collection responsibilities to the sales force. Sales reps