Answered: Omega Company has the following two…

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

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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