In Response To How The Sales Incentives Might Be Contributing To Falling Profits Despite Growing Sales Dono Company S C 1 (23.32 KiB) Viewed 17 times
In Response To How The Sales Incentives Might Be Contributing To Falling Profits Despite Growing Sales Dono Company S C 2 (22.5 KiB) Viewed 17 times
In response to how the sales incentives might be contributing to falling profits despite growing sales, Dono Company's controller has produced the following information on last year's sales to two customers that purchased a variety of products from the company. (Click the icon to view the information.) Requirements (a) Which customer is more profitable for the company? (b) Compare a sales incentive scheme that pays 1% of sales revenue to an incentive scheme that pays 3% of customer profit. How will each scheme affect salespersons' desire to increase sales to each customer? + Requirement (a) Which customer is more profitable for the company? Begin by computing the operating profit associated with each customer. (Use parentheses or a minus sign for an operating loss.) Harrison Adler Sales Cost of goods sold Gross margin MSDA expenses Operating profit
ha rep ass Data table Sales Cost of goods sold MSDA expenses, excluding sales commissions Print Customers Harrison $ 480,000 $ 40,000 400,000 Done Adler 450,000 130,000 100,000 - X me affect salespersons' des
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