SEAL RITE ENVELOPE COMPANY (B)

Profitability Analysis

1. What problems are indicated from the data in
2. What should Rose Douglas do about those problems?

Annual Customer

Volume ($000)

Over $200

$100-200

$50-99.9

$40-49.9

$30-39.9

$20-29.9

$10-19.9

$5-9.9

$4.4.9

$3-3.9

$2-2.9

$1.1.9

Number of

Accounts

4

4

32

24

25

63

157

349

235

309

569

842

Number of Calls

256

274

1,344

1.011

1158

3.114

4725

Under $1

No sales

871

688

7.021

2.639

3,233

4,212

6,360

6.345

2,001

Total or average

4,172

43,693

O T:

guesuons:

Sales

(% of total)

10.9

2.9

11.7

5.4

40

8.5

13.2

15.7

5.0

5.2

71

6.9

3.5

0.0

100

Gross

Selling

Operating

profit

Expense

Profit

(% of sales) (% of sales) (% of sales)

15.9

4.0

11.9

23.6

9.5

14.1

19.8

10.2

9.6

18.4

10.2

8.2

21.8

9.6

12.2

22.8

10.9

11.9

23.9

13.4

10.5

25.9

16.8

91

29.0

19.3

10.3

31.6

21.9

9.7

31.2

25.3

5.9

30.4

343

23.6

30.9

75.3

244.4

0.0

0.0

0.0

25.0

201

5.0