A national manufacturer of roofing and siding materials has 40 salespeople. Each has his or her own territory and sells all three of the firm’s product lines. They sell primarily to wholesalers and large retailers in the lumber and building materials field. The company wants to make a territorial analysis of marketing costs.

What bases do you recommend it should use to allocate among the territories each of the following costs?

a) Sales force salaries.

b) Sales force travel expenses.

c) Sales force commissions paid on gross margin.

d) Salaries and expenses of three regional sales managers.

e) Sales training expenses.

f ) Television advertising (local and national).

g) Newspaper advertising.

h) Billing.

i) Shipping from three regional factories.

j) Marketing research.

k) General sales manager’s salary and office expenses.
l) Advertising overhead.