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Essay

Butler Lumber Case Study

Essay specific features

 

Issue:

Business

 

Written by:

Christopher S

 

Date added:

November 23, 2015

 

Level:

University

 

Grade:

C

 

No of pages / words:

2 / 517

 

Was viewed:

2334 times

 

Rating of current essay:

 
Essay content:

One alarming fact about his business is the lack of a sales staff, yet the revenue has been able to grow at a fast pace; 18% in 1989, 34% in 1990, 19% in 1991. By adding another an experienced salesman that is working for a base salary plus commission, they can grow the revenues even more. By having this person work on commission, this will eat into the profit margin for the materials he is selling...
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By having this person work on commission, this will eat into the profit margin for the materials he is selling. But the net impact to the BLC will be positive. I would advise Mr. Butler to select the LOC for up to $465,000 because he can take out as little as he needs. He does not need all $465,000 this quarter, but he may need some in the first and last quarters of the year because he obtains 55% of his revenues in the second and third quarters...
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