PRODUCTION BUDGET Jan Feb March April May June Six Months Production (trailers) 3,000 3,000 3,000 3,000...

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PRODUCTION BUDGET Jan Feb March April May June Six Months Production (trailers) 3,000 3,000 3,000 3,000 3,000 3,000 18,000 Add: beginning inventory Total available Less: budgeted sales Ending inventory EXHIBIT 1. ACTUAL AND PROJECTED SALES IN NUMBER OF TRAILERS Actual sales 2005 2006 2007 13,765 14,880 15,991 2008 17,809 2009 19,634 2010 23,322 Projected sales 2011 2012 2013 2014 2015 28,000 33,600 40,320 48,384 58,060 4. What metric should Let's Go use to measure the performance of each manager in this case? What bonus system would you suggest that incorporates these measures and also encourages the managers to work as a team? Actual sales in dollars for the last two months of 2010 and budgeted sales for the first six months of 2011 follow: November 2010 (actual) December 2010 (actual) January 2011 (budgeted) $1,439,000 $2,131,000 $2.500.000 PRODUCTION BUDGET Jan Feb March April May June Six Months Production (trailers) 3,000 3,000 3,000 3,000 3,000 3,000 18,000 Add: beginning inventory Total available Less: budgeted sales Ending inventory EXHIBIT 1. ACTUAL AND PROJECTED SALES IN NUMBER OF TRAILERS Actual sales 2005 2006 2007 13,765 14,880 15,991 2008 17,809 2009 19,634 2010 23,322 Projected sales 2011 2012 2013 2014 2015 28,000 33,600 40,320 48,384 58,060 4. What metric should Let's Go use to measure the performance of each manager in this case? What bonus system would you suggest that incorporates these measures and also encourages the managers to work as a team? Actual sales in dollars for the last two months of 2010 and budgeted sales for the first six months of 2011 follow: November 2010 (actual) December 2010 (actual) January 2011 (budgeted) $1,439,000 $2,131,000 $2.500.000