Identify and explain any problems you see with sales plan

Assignment Help Accounting Basics

Reference no: EM13259364

Flash Newton is national sales director aat Bright and SHinyToothpaste Company. Tge firm manufactures and distributes afull line of premium-priced personal care products sold through a carefully selected set of distributors nationwide. The popularity and profit margins of the Bright and Shiny product linemake distributorships very profitable and there is intense competition when one becomes available.

Flash, and the other regional sales directors working for him,are compensated by a base salary and a significant bonus tied to percentage increases in yearly sales. Because of an impendingrecession, sales have been mostly flat during the first threequarters of the year. On October 3, Flash convineddistributors with Birght and Shiny's newest dales plan. Alldistributors would be required to buy, during the 4th quarter, upto 2 years worth of inventory of th firm' products. Further,the prices charged on these special purchases would be 10% greaterthan usual. Any distributors not agreeing to the proposalwould automatically lose their distributorship. Because mostdistributors are not expected to have cash readily available to payfor these additional purchases under the usual 30- day creditterms, Bight and Shiny will allow up to 12 months to pay.

The new policy has been a huge success and by year end, totalorders and shipments to distributors are up by 12 % over theprevious year. Bight and Shiny recorded all shipments asrevenuee even though some distributors were told by lower-levelmanagers that they could return unsold products. Because manydistributors could not handle the large shipments in their usualstorage facilities, many orders have been shipped to third-partyware houses for storage sales program, the company held the booksopen for a few days after December 31 to obtain and ship additionalorders.

Identify and explain any problems you see with the sales plan. If you were Bright and Shiny CEO, which aspects of the sales plan would you have approved and which would you have denied. Why?

Reference no: EM13259364

Questions Cloud

How to find the magnetic flux in that plane : given a triangular plane in the coordinate plane slanted with a surface bounded by the closed path. how to find the magnetic flux in that plane

Explain what are the resonance structures and intermediates : What are the resonance structures and intermediates in the formation of bromoacetanilide from the reaction of acetanilide and bromine liquid with acetic acid

Calculate the annual income of the company : Calculate the annual income of the company using (1) the percentage-of-completion method and (2) the completed-contract method.

Required proprietary fund financial statements : One of the required proprietary fund financial statements is a:

Identify and explain any problems you see with sales plan : Identify and explain any problems you see with the sales plan. If you were Bright and Shiny CEO, which aspects of the sales plan would you have approved and which would you have denied. Why?

Draw the ray diagram for this set up : A spherical mirror has a focal length of -14 cm. Where is the mirror's image for an object which is at a distance of 30 cm? Draw the ray diagram for this set up

Write the expression for the circuit e and i : A dc current of 200 mA is switched into a circuit at t=0 write the expression for the circuit i(t) and sketch it A dc voltage of 12 V is switched on at t=5 s, write the expression for the circuit e(t) and sketch it A dc current of 80 mA is switched o..

Explain the composition of the vapor of a pentane-hexane : What is the composition of the vapor of a pentane-hexane solution that has a vapor pressure of 357 Torr at 25C vapor pressures at 25 C= pure pentane is equal to 511 torr, pure hexane equals 150 torr.

What is highest rate you can afford on a 78-month apr loan : You want to borrow $61,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $1,000, but no more. Assuming monthly compounding, what is the highest rate you can afford on a 78-month APR loan?

User Account

All Pages