Pittman Company is a small but growing manufacturer of telecommunications equipment. The company has no...
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Pittman Company is a small but growing manufacturer of telecommunications equipment. The company has no sales force of its own; rather, it relies completely on independent sales agents to market its products. These agents are paid a sales commission of 15% for all items sold Barbara Cheney, Pittman's controller, has just prepared the company's budgeted income statement for next year as follows. Trmantily depreciotion on storage facilities: As Barbarn handed the statement to Karl Vecci, Pittman's president, she commented, " 7 went ahead and used the agents' 15%
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