Tom's Sports Wear is a retailer of sports hats located in Atlanta, Georgia. Although Tom's carries numerous styles of sports hats, each hat has approximately the same price and invoice purchase cost, as shown below. Sales personnel receive large commissions to encourage them to be more aggressive in their sales efforts. Currently the economy of Atlanta is really humming, and sales growth at Tom's has been great. However, the business is very competitive, and Tom has relied on its knowledgeable and courteous staff to attract and retain customers, who otherwise might go to other sports wear stores. Also, because of the rapid growth in sales, Tom is finding it more difficult to manage certain aspects of the business, such as restocking of inventory and hiring and training new salespeople.

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