Omega Company has the following two customers: Woodruff Ensley Sales $900,000 $800,000 Cost of Goods Sold 360,000 160,000 Other expenses excluding sales commissions 640,000 130,000
Omega Company has the following two customers: Woodruff Ensley Sales $900,000 $800,000 Cost of Goods Sold 360,000 160,000 Other expenses excluding sales commissions 640,000 130,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Omega Company has the following two customers:
| Woodruff | Ensley | |
| Sales | $900,000 | $800,000 |
| Cost of Goods Sold | 360,000 | 160,000 |
|
Other expenses excluding sales commissions |
640,000 | 130,000 |
If the company pays a 4% sales commission based on customer profit, this will encourage a salespersons' efforts to sell to:
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