Eclipse Vans Business Report
“Eclipse Vans” is a manufacturer of recreational vehicles (Vans, camper trailers and motorhomes). They build vehicles in their northern suburbs factory and sell direct to the public. They pride themselves on building modern, luxury off road and touring vehicles at affordable prices. Abdul and Joeline Hussein own and manage the business. Joeline manages reception, staffing, customer issues and accounts. Abdul manages the manufacturing process. Joeline has hired two junior and one senior sales staff. Staff are paid an annual base rate and a commission which is based on the profit of each sale made (see spreadsheet).
Customers pay an initial deposit of 10% and the remainder on delivery. A set retail price is charged for vans, which is dependent on the type/model of the van. Abdul has calculated the cost price for each van (excluding batch preparation costs) and added a 20% profit margin to all vans and associated accessories. Vans are manufactured in ‘batches’ based on the model. Abdul has estimated the ‘preparation’ costs for production of each batch at $5,000. He takes this figure into account when calculating profitability.
Eclipse vans are advertised in several ‘Camping’ and ‘4WD’ magazines. In 2018, in an effort to further increase sales Joeline decided to offer an ‘options pack’ to each customer which could be purchased at a special discounted price. The pack being offered depended on the van type (see spreadsheet).
Over the past two years Joeline has recorded details of all van sales in an excel workbook. She has asked you to use the data provided in the spreadsheet to complete relevant calculations and to use Excel ‘tools’ to analyse the data provided. She then requires you to write a business report which analyses and discusses both profit growth and the various options available to help increase future profitability.
Joeline and Abdul are interested in both quantity and profitability of sales. They hope you can provide some insight regarding, the type of vans they should focus their efforts on. Joeline also wonders if she should make changes to the ‘options pack’ offer. Perhaps the data has highlighted other actions that would assist them in improving profitability.
A spreadsheet has been provided containing the data for “Eclipse Vans” sales for 2017 and 2018.In summary
Undertake descriptive and predictive analysis of the data Joeline has maintained over the past two years. Present your findings in a professionally presented report:
• Provide an overview of profitability trends (past and present) undertaking predictive analysis.
• Discuss the results of your descriptive analysis and options for future sales growth (based on the requirements of Abdul and Joeline).
• Discuss at least one other action which you believe could assist profitability and is supported by the data you have been given.
• Make recommendations with regard to future changes which might assist in further improving profitability.
Briefly justify these recommendations (i.e. prescribe what should be done and why this would be helpful, drawing on your predictive and prescriptive analysis).