Determine Drieser's Sales Factors for States K, M, and N

question 100

Essay

Determine Drieser's sales factors for States K, M, and N.
Drieser Corporation's manufacturing facility, distribution center, and retail store are located in State K.Drieser sells its products to residents located in States K, M, and N.
Sales to residents of K are conducted through a retail store.Sales to residents of M are obtained by Drieser's sales representative, who has the authority to solicit, accept, and approve sales orders in State M.Residents of N can purchase Drieser's product only if they place an order online and arrange to take delivery of the product at Drieser's shipping dock.
Drieser's sales this year were reported as follows. $\begin{array}{lr}\text { Sales to residents of State K } & \$ 1,000,000 \\\text { Sales to residents of State M } & 600,000 \\\text { Sales to residents of State N } & 900,000\\\text { Total }&\$2,500,000\end{array}$ Drieser's activities within the three states are limited to those described above.All of the states have adopted a throwback provision and utilize a three-factor apportionment formula under which sales, property, and payroll are equally weighted.State K sources dock sales to the destination state.

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Definitions:

Economy's Expenditure

The total spending in an economy, including consumption, investment, government purchases, and net exports.

Total Income

The sum of all earnings received by an individual or entity, including wages, salaries, benefits, and other forms of compensation.

Total Expenditure

The total amount spent on goods and services over a specific period.

Circular-Flow Diagram

A visual model of the economy that shows how dollars flow through markets among households and firms.