Corporate Profit Research Paper Example | Topics and Well Written Essays - 2000 words

Corporate Profit - Research Paper Example $3178(in thousands) with the actual sales of $7812(in thousands), whereas of district number two is $3058 (in thousands) with the actual sales of $74809(in thousands). The northeast company with the sales of $6812 (in thousands) has actual gross profit of $2478(in thousands). This district, since it has third largest sales is expected that it would have third larges profit margins also, but it is not so. The other districts like district number 4 has more profit margins, $2590(in thousands) than the northeast district. The graph below shows the comparison of various districts considering actual gross profit of various districts. District number 4 has same number of sales representatives as northeast district. It is this figure which ahs compelled the country sales manager to appoint a new district sales manager so as to increase the sales margins of the company in that district. The actual gross profit of districts 5, 6 and 7 are $2372(in thousands), $2358 (in thousands) and $2260 (i n thousands) respectively. Though northeast district higher profits than district 5, 6 and 7, yet considering its sales figure it is not high enough districts. The analysis of these expenses is important because the actual profits of the company depend on these expenses. As clearly seen from the graph, district 2 has less expenses than district 3 i.e. north east district this in spite of district 2 having more actual sales and actual gross profit than northeast district. As the expenses increase profits are bound to reduce. This explains why northeast district is showing lesser profits compared to other districts with the similar actual sales. Of these expenses the district has $108(in thousands) expenses in the form of sales representative expenses. The main aim of the new manager would be to reduce these expenses. Selling expenses of the other countries are comparatively lesser than that of the northeast district. This has prompted the country sales manager to appoint the new sales manager for the district so as to reduce the expenses. Figure 3 4) District wise contribution to the Corporate Profit: From the graph below it is clear that district 1 contributed $2401,168 while district 2 contributed $2355,308 towards the corporate profit. However since the northeast company higher expenses its contribution towards the corporate profits is $1740942. This is even lesser than the district number 4 which we had seen earlier had lesser sales than the northeast district. Contribution of district 4 is $1,893,694. Contribution of north central district, number 7, is surprisingly 2,019,484, which is much more than northeast district. The prominent reason behind this is that is has very low expenses $600516. This clearly shows again that the expenses of northeast company