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PLEASE HELP ME WITH ANSWERS ONE AND TWO Soccer Ball Inc Soccer Ball Inc., a manufacturer of youth soccer balls, prepared the income statement for

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PLEASE HELP ME WITH ANSWERS ONE AND TWO

Soccer Ball Inc Soccer Ball Inc., a manufacturer of youth soccer balls, prepared the income statement for the year ended December 31, 2016 (see Exhibit 1): Exhibit 1 Income Statement Sales (1888,000 units) Cost of sales Gross margin Delivery costs $9,440,000 5,664,000 $3,776,000 Containers Packing and Shipping Labor Freight $182,000 $438,000 $800,000 $1,420,000 Selling Costs Sales Manager Sales Salaries Commissions Sports Consortium Commissions Bad Debts 60,000 90,000 80,000 $70,000 30,000 330,000 Advertising Educational Media Sport Industry Media 120,000 90,000 General Business Support Operating Profit 210,000 $150,000 $1,666,000 The company sells soccer balls to schools, children's sports teams, and sporting goods stores which represents 4 segments. The selling price per unit is $5. The cost of sales is all variable Large public and private schools receive advertising through educational media, and place orders directly to the manufacturing plant. No sales Staff calls are made. Orders are received through the mail, fax, telephone or by computer. School districts arrange for their own delivery and send a truck to the plant to pick up orders when they are ready Smaller private schools located with 100 mile radius of then plant are visited by salesmen. These salesmen are paid commissions, and are not company employees. Sporting goods stores within a 400 miles radius of the plant are visited by 4 salesmen who are company employees and are paid a salary Children's sports teams within 600 miles radius of the plant are contacted through a sports consortium which sells to leagues. Advertising is done through sports industry media. The cost of that advertising is shared 50/50 with the sports consortium. The sports consortium receives a commission on their sales

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