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In the current implementation of the PAS, Schwab has decided to allocate the full cost of the PGA Tour sponsorship to divisions (e.g., customer segments).
In the current implementation of the PAS, Schwab has decided to allocate the full cost of the PGA Tour sponsorship to divisions (e.g., customer segments). Of the total cost, 22% are a result of having a hospitality tent at the event (primarily food and drinks), while the remaining 78% represents a fixed payment to the PGA Tour made before the tournament. The 22% portion is allocated to segments based on the number of attendees at the hospitality tent, whereas the remaining 78% is allocated to segments based on a combination of existing balances and net new assets. a. What do you think about the allocation of the hospitality tent costs (22% portion)? b. What do you think about the allocation of the PGA Tour payment (78% portion)
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