The XYZ company has been in business for over 40years. Sales has been consistent for the last 10 years at $2m annually. In addition, the Gross margin has been consistent at 60%. Costs were all consistent- Warehouse costs $35,000, Transportation $10,000, ICC, $15,000 and Other Costs $5,000 Taxes and Interest at $10,000. The Assets were $38,000 Current, $120,000 Long Term and Liabilities were Current $35,000, Long Term $50,000. Last year the company made a number of changes in the distribution of the product to their customers.

Here is the email you received from the accountant:

Greetings,

I'm very busy with tax season but here is some information you will need: Sales this last year were $2.2m and COGS were $850,000. The sale of our Cincinnati warehouse reduced LT assets by $50,000 to $70,000 and new warehouse costs are $17,000. The additional mileage and delivery times to the customers increased our transportation costs $35,000. Inventory carrying costs remained constant at $15,000 which is strange. Other costs to the organization grew to $8,000. Taxes and Interest $15,000. I haven't had a chance to check the profit levels. Current Assets grew to $52,000 but so did Current Liabilities to $54,000. The sale of the asset resulted in Long Term Liabilities decreasing to $30,000. Anyways very busy got to go.

Bob

You have been tasked by the owner to do an analysis of this change and determine whether or not is was successful. Please to a complete SPM analysis and include all the "boxes" in the SPM.