“The Business Forms Division in 1988 earned a 20 percent Return on investment(ROI). But returns have been dropping for several years. TFc jected to earn an ROI of only 6 percent for 1992. Something tells me that are not managing this business very well! It seems to me that the charge services needs closer scrutiny. I believe we should charge our clients services they use. It doesn’t seem fair that if two clients buy the same amid of product from us, but one keeps a lot of inventory at our distribution ces and is constantly requesting small shipments and the other hardly bother at all, both should pay the same service fees
John looked through his records and found two accounts of similar size counts A and B, which were handled by different sale people. Accounts A both had annual sales of $79,320 with the cost of the product being