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PLEASE ANSWER!!!!! Use the following table for calculating ROAM for the two salespeople Compare (based on gross margin) and make recommendations about each salesperson's salary,
PLEASE ANSWER!!!!!
Use the following table for calculating ROAM for the two salespeople Compare (based on gross margin) and make recommendations about each salesperson's salary, commission, office expense, and travel & entertainment What should each salesperson do to IMPROVE ROAM Salesperson A Salesperson B Ind. Avg. Sales 2,500,000 1,500,000 $ 1,275,000 Cost of Goods Sold 2,000,000 20% Gross Margin *** Variable Expenses Salary Commission Office Expenses Travel & Entertainment 80,000 10,000 20,000 20,000 155,000 25,000 30,000 40,000 15% 10% 8% 4% Total Variable Expense*** Salesperson's Contribution*** Salesperson's Investments Accounts Receivabless 500,000 150,000 10% 225,000 Inventories Total Investment (Assets)*** S 750,000 5% Eamings as a % of Sales *** 45% Tumover** 10 Salesperson's % ROAM** 32 Step by Step Solution
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