To: llamaphlegm who wrote (10073 ) 7/12/1998 10:16:00 AM From: Glenn D. Rudolph Read Replies (1) | Respond to
Illa,payroll and related expenses for personnel engaged in marketing, selling and fulfillment activities. All fulfillment costs not included in cost of sales, including the cost of operating and staffing distribution centers and customer service, are included in marketing and sales. Marketing and sales expenses increased primarily due to increases in the Company's advertising and promotional expenditures (including expenses associated with Internet aggregator promotional relationships), increased payroll and related costs associated with fulfilling customer demand and increased credit card merchant fees resulting from higher sales. Such expenses decreased as a percentage of net sales due to the significant increase in net sales. The Company intends to continue to pursue its aggressive branding and marketing campaign and expects its costs of fulfillment to increase based on anticipated sales growth. Therefore, the Company expects marketing and sales expenses to increase significantly in absolute dollars. "NO payroll according to the 10Q except for administrative which was very small. This is as clear as it gets.
