The traditional approach toward the top management group is to have a clear hierarchy of authority with a CEO, a chief operating officer, and several subordinate executives who head various subunits of the organization.
The Menswear Department of Major's Department Store had sales of $188,000,cost of goods sold of $132,500,indirect expenses of $13,250,and direct expenses of $27,500 for the current period.The Menswear Department's contribution to overhead as a percent of sales is: