Reference no: EM131581086

Question: Winterton Group The Winterton Group is an investment advisory firm specializing in high-income investors in upstate New York. Winterton has offices in Rochester, Syracuse, and Buffalo. Operating as a profit center, each office receives central services, including information technology, marketing, accounting, and payroll. Winterton has 20 investment advisors, 7 each in Syracuse and Rochester, and 6 in Buffalo. Each investment advisor is paid a fixed salary, a commission based on the revenue generated from clients, plus 2 percent of regional office profits and 1 percent of firm profits. One of the senior investment advisors in each office is designated as the office manager and is responsible for running the office. The office manager receives 8 percent of the regional office profits instead of 2 percent. Regional office expenses include commissions paid to investment advisors. The following regional profits are calculated before the 2 percent profit sharing. Firm profits are the sum of the three regional office profits. This table summarizes the current profits per office after allocating central service costs based on office revenues.