Mapping Natural Expursses into Rjficlional Expenses

Step 2 : Assigning Functional Expenses to Marketing Entities I'he next task is to measure how much functional expense ;vas ns-sociaied with selling through each ivpe of channel- Consider Hie selling effort. The selling effort is indicated by the number of sales made in each channel. This number is found in the selling column of Table 4.1t. Altogether. 275 sales calls were made during lite period. Because the total selling expens^ amounted to £5,500 (see Tablo 4.8), ihe selling expense averaged 520 per call.

Advertising expense can bp allocated according to the number of ads addressed to diffci-unt channels, li-ecnu^e there we CP 100 ads altogether, [lie average ad cost $31.

The packing and delivery expense Is allocated actimlinf; to the number of ottfcrs placed by each type bf channel. This same basis was used For allocating billing and collection expense,

Step 3: Preparing a Profit-and-loss Statement for Each Marketing Entity A profit-and-loss statement can now he prepared foreaeh type of channel (see Table 4. S). Hecaunc hardware stores accounted for half of total sales ($30.000 out of £60,000], Ulis channel is charged with half the cost of goods sold i.Slii.üOO out of 533,000). "II sis leaves a gross margin from hardware si ores pf SI 0,500. From


Salehoo Secrets and Tips

Salehoo Secrets and Tips

As with any web site, SaleHoo has a number of features that will help you in buying products from around the world. Once you have an account on SaleHoo, which only costs a one-time fee, you can establish up to twenty named searches for products. After that, any time those items become available, you’ll be alerted.

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