Allied Novelty Company Kerri Ross, northern regional sales manager for Allied Novelty Company, has compiled data to use to analyze the effectiveness of her region's performance. She hopes to identify problem areas and formulate solutions that can be implemented in the upcoming year. She is scheduled to meet with her boss, national sales manager Paula Rich, in two days. Her goals were to grow sales 2% and her budgeted costs as a percentage of sales was 10%. District District District District District one two three four five (5000) (5000) (5000) (5000) (5000) Sales 16,400 19,000 20,900 27 500 16,800 Cost of Goods Sold 9.840 11,020 12,958 16,500 9,240 84 7,000 Expenses Compensation 1.230 1,620 1,470 2,280 1,260 Transportation 82 134 140 100 Lodging & Meals 34 60 32 82 42 Telephone 16 20 24 28 18 Entertainment 20 16 30 24 24 Training 160 190 210 250 220 Assets Managed Dist. Accts. Rec. 2,340 2,800 2.900 4,840 2,300 Dist. Inventory 4.000 6,400 10,500 5,000 # of Salespeople 16 18 22 24 20 Sales Quota 16,200 19,500 20,500 28,250 16,600 Sales Last Year 15,000 18,500 20,500 27,850 16,400 Industry Sales 52,904 59,376 61,472 91,667 60,000 Discussion Questions 1. Kerri should perform sales, cost, profitability and productivity analyses for each district. Conduct these suggested analyses being careful to document your work and your answers. 2. What problems can you identify in the districts from your analyses? 3. What solutions would you recommend to solve these problems and improve sales effectiveness in the future? Explain why your recommendations are appropriate