Question

Problem 1: You are the owner and manager of a fertilizer operation. Your sales people have turned in the following sales records for the past year. Dollar value represent amount of sales for each rep. as of Dec. 31, 2015 Sales Reps Market size 100000 100000 125000 130000 200000 Region Region Region Region Region 1 2 3 4 5 Rep 1 50000 Rep 2 10000 60000 Rep 3 80000 Rep 4 85000 Rep 5 30000 1) Do you see any problems with the sales journal entry above or anything that you need to address as a manager? How would you address it if something is wrong?

Answer 1

The given company is doing the business of fertilizer and analyse there sales data periodically for the different regions where the operation of company is spreads. After going through the sales figure it is noticed that the report No 5 shown the sales figure very less as compared to other regions with the total volume of sales exist in the industry.

The Board of company is expecting with their managers to explore the potential of market and the trends of the industry with the share of company should get increased. Now as a manager what is required is, to study the region no 5 where the company sales is not picked up. To get the volume of sales satisfactory for the region, first of all we should compare the product of the company with the available similar products in the market.

The volume of sale may be less due to many reasons such as

- Higher costing model

-Quality of the product as compared to available option

-Presentation of product to the chain of the retailer with the proper sales promotion polices

-Explain the competitive advantage of your products.

All these options will provide the better results for the region No 5 in the next reports to be available for the review of management of the company.