An analysis of costs for a small media company in Cornwall, Ontario, revealed that the sales team for the company consists of three different individuals: Peter Piper, Lauren McCarthy, and Elizabeth Alldred. Each of them is deeply involved in selling advertising space in the company's community newspaper as well as on the local community cable channel. Many tasks must be done to keep the office running efficiently. Lauren is responsible for ensuring that the office runs smoothly and that all ads are properly formatted and placed in the appropriate media. Elizabeth handles all of the accounting in the office. Lauren divides her time, with 75 percent in selling and 25 percent in administration. Elizabeth devotes 40 percent of her time to accounting and the rest to selling. The costs of each are as follows:

Required

1. Categorize the costs of the sales team between sales and administrative costs.2. CONCEPTUAL CONNECTION Why do you think Lauren and Elizabeth are paid more salary than Peter?

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Salary Commissions Peter Piper Lauren McCarthy $ 40,000 $ 40,000 50,000 50,000 $140,000 35,000 25,000 $100,000 Elizabeth Alldred