Communication: Jacqui Marx and Melissa Clark, Two Salespersons in Adjoining

Essay

Communication: Jacqui Marx and Melissa Clark, two salespersons in adjoining territories, regularly compete for bonuses. During the last month, their dollar volume of sales, on which the bonuses are based, was nearly equal. On the last day of the month, both made a large sale. Both orders were shipped on the last day of the month and both were received by the customer on the fifth day of the following month. Jacqui's sale was FOB shipping point (ownership passes to buyer at time of shipping), and Melissa's was FOB destination (ownership passes to buyer at time of receipt). The company 'counts' sales for purposes of calculating bonuses on the date that ownership passes to the purchaser. Jacqui's sale was therefore counted in her monthly total of sales, Melissa's was not. Melissa is quite upset. She has asked you to just include it, or to take Jacqui's off as well. She also has told you that you are being unethical for allowing Jacqui to get a bonus just for choosing a particular shipping method.
Write a memo to Melissa. Explain your position.