Olympus, Inc., manufactures three models of mattress: the Slipcase, 12, 440 for the, and 5, 460 for the Ultimo, Gene Dixon, vice president of sales, has provided the following information: a. Salaries for his office (including himself at $63, 950, a marketing research assistant at $42, 450, and an administrative assistant at $22, 500) are badgered for $128, 900 next year. b. Depreciation on the offices and equipment is $21, 900 per year. c. Office supplies and other expensed total $23, 400 per year. d. Advertising has been steady at $22, 450 per year. However, the Ultimo is a new product and will required extensive advertising to educate consumers on the unique features of this high-end mistress. Gene believes the company should spend 20 percent of first-year Ultimo sales for a print and television campaign. e. Commissions on the Sleepless and lines are 5 percent of sales. These commissions are paid to independent jobbers who sell the mass to retail stress f. Last year, shipping for the and lines averaged $55 per unit sold. Gene expects the line to ship for $70 per units old since this model features a larger mattress. Suppose that Gene is considering three sales sceneries as follows. Suppose Gene determines that next year's sales Division activities include the following. Research-reaching current and future conditions is the industry Shipping-arranging for shipping of mattress and handling calls from purchasing agents it retail stores to trace shipments and correct errors. Jobbers-coordinating the efforts of the independent jobbers who sell the mattress Basic ads-placing print and television ads for the and lines ads-choosing and working with the advertising agency on the account Office management-operating the Sales Division office. The percentage of time spent by each employee of the Sales Division on each of the above activities is given in the following table. Additional information is as follows. a. Depreciation on the office equipment belongs to the office management activity. b. Of the $23, 400 for office supplies and other expenses $5, 600 can be assigned to telephone cost which can be split evenly between the shipping and jobbers activities. An additional $2, 900 per year is attributable to Internet connections and fees, and the bulk of these cost (80 percent) are assignable to research. The remainder is a cost of office management. All other office supplies and costs are assigned to the office management activity