Classic Industries, Inc., is deciding whether to expand its line of women’s clothing called Pants by Olenek. Sales in units of this product were 22,500, 28,900, and 36,200 in 20×7, 20×8, and 20×9, respectively. The product has been very profitable, averaging 35 percent profit (above cost) over the three-year period. The company has ten sales representatives covering seven states in the Northeast. Production capacity at present is about 40,000 pants per year. There is adequate plant space for additional equipment, and the labor needed can be easily hired and trained.
The organization’s management is made up of four vice presidents: the vice president of marketing, the vice president of production, the vice president of finance, and the vice president of management information systems. Each vice president is directly responsible to the president, Teresa Jefferson.
1. What types of information will Jefferson need before she can decide whether to expand the Pants by Olenek line?
2. Assume that one report needed to support Jefferson’s decision is an analysis of sales, broken down by sales representative, over the past three years. How would each of the four w’s pertain to this report?
3. Design a format for the report described in 2.