70.2K

Verified Solution

Link Copied!

In letter B) I am struggling with how to come up with the sponsorship costs on the income statement. On the breakdown on Chegg the person got 219,638 for Masters and 18,280,632 for Distance. I cannot figure this out. Can someone please assist me with this?

Thank you

Tilist Golf Tilist Golf is a premier producer of golf clubs and golf balls. The Ball Division makes two types of balls: a professional ball (the "Masters") played by professional and top amateur players, and a mass- market ball (the "Distance") which targets weekend players. Although most golf balls are very similar in construction and performance, slight differences exist between them. The Masters ball is a little softer and allows skilled players to put more spin on the ball for control. The Distance ball is a little harder with a more durable cover. While the two balls perform similarly, many golfers perceive the differences are larger than they really are, especially across ball manufacturers. Most golfers have a favorite brand of ball. Golf ball manufacturers compete over ball design (dimples, cover, core composition), price, and marketing. The principal way balls are marketed is through the endorsements of major professional golfers. Tilist pays professional golfers up to $500,000 per year to wear Tilist hats or shirts during tournaments, to allow Tilist to use their image in commercials, and to play Tilist balls (which are provided free to the professional) in all tournaments. Tilist's Ball Division has separate profit centers managing each type of ball. The following table summarizes the operations of the Ball Division for last year

Answer & Explanation Solved by verified expert

See Answer