Essay: Total Marketing Commission

Essay: Total Marketing Commission
June 8, 2011 Comments Off on Essay: Total Marketing Commission Academic Papers on Business Studies,Sample Academic Papers admin

Sample Essay

Total marketing commissions as % of Total Sales = 80,172,000 / 162,547,000

Total marketing commissions as % of Total Sales = 49%

Total training programs and marketing material as % of Total Sales = 11,329,000 / 162,547,000

Total training programs and marketing material as % of Total Sales = 7%

Total general and administrative expenses as % of Total Sales = 52,664,000/ 162,547,000

Total general and administrative expenses as % of Total Sales = 32%

As explained before the revenue from marketing segment is $133,635,000. The variable and fixed costs of the marketing activity are calculated by implementing these percentages.

Marketing commissions = 133,635,000 X 49%

Marketing commissions = $65,481,150

Training programs and marketing material = 133,635,000 X 7%

Training programs and marketing material = $9,354,450

 

General and administrative expenses = 133,635,000 X 32%

General and administrative expenses = 42,763,200

Total Variable Cost = Marketing commissions + Training programs and marketing material

Total Variable Cost = 65,481,150 + 9,354,450

Total Variable Cost = $117,598,800

Variable cost per unit = Total Variable Cost / Level of activity

Variable cost per unit = 117,598,800 / 127350

Variable cost per unit = $923.43

Total Fixed Costs = General and administrative expenses = $42,763,200

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