P 4-18: Rothwell Inc. Rothwell Inc. is th and servic product function and primary manufacturing location e leader in computer-integrated manufacturing and factory automation products es. The Rothwell product offering is segmented into 15 product categories, based on Rothwell's sales division sells all 15 product categories and is composed of 25 district offices located throughout the United States. The company is highly decentralized, with district offices responsible for setting sales price, product mix, and other variables. rict offices are rewarded based on sales. Some large customers have plants in more than one of Rothwell's sales districts. In cases where sales are made to these customers, the district offices participate jointly and sales credits are shared by each district involved. Th e sales division compensation plan designed by L. L. Rothwell, founder of the firm, was structured so that the staff would pursue sales in each of the 15 product categories. The selling program has the following features: Each sales representative receives a commission based on a percentage of the sales revenue generated Each district (approximately 160 sales reps) is assigned a quota for each product line, . defined in terms of dollar sales. In addition to commission, sales reps are eligible for an annual bonus. The company cal- culates individual bonuses by multiplying the number of bonus points earned by the indi- . vidual target bonus amount. Points are credited at the district level