Business Report: Eclipse Vans Company Performance Analysis (ISYS2056)

This business report analyzes the performance of Eclipse Vans Company, a manufacturer of vans. The report examines the company's sales and profitability between 2017 and 2018, comparing total profits, salesperson salaries in relation to sales figures, and the sales of different van models. The analysis reveals that the company's profit increased in 2018 due to the introduction of an option pack offer. Furthermore, the report identifies the top-selling van model, Adventurer 65, and the least sold model, Tourer 85. The findings lead to recommendations for Eclipse Vans Company to focus on the production of the Adventurer 65 van, increase the issuance of the option pack offer, and award the top sales person with a van to motivate other salespersons to increase their sales.

ECLIPSE VANS COMPANY BUSINESS REPORT
BUSINESS INFORMATION SYSTEM
ISYS2056
STUDENT NAME & STUDENT NUMBER
TUTOR’S NAME

Table of Contents
1.0 Introduction...........................................................................................................................................1
Analysis and discussion...............................................................................................................................1
2.0 Descriptive analysis...........................................................................................................................1
2.1 Total profits earned by Eclipse Vans Company between 2017 to 2018.........................................2
2.2 Sales person’s salaries in relation to number of sales....................................................................3
2.3 Models and sales of vans in Eclipse Vans Company.......................................................................5
3.0 Conclusion.............................................................................................................................................6
4.0 Recommendations.................................................................................................................................6

1.0 Introduction
Eclipse Vans Company is a manufacturer of moderns, luxurious and touring vans and further
more sells them at a cheaper price to the public in Northern suburbs. This business report focuses
on both quantity and profitability of the company’s sales. Eclipse Vans Company produces vans
in batches based on the type and models of the vans. The estimation for the preparation cost for
production of each batch is 5,000 USD. This ($ 5000) figure is taken into account when
calculating the profit made after sales.
The selling price of the vans is dependent on the type and model of the van. The marked price for
each van is calculated, excluding batch preparation costs and an additional cost of 20% profit
margin to all vans and associated accessories.
During purchase the customers pays a deposit of 10% and the balance to be paid upon delivery
of the product.
In the year 2018, Joeline made efforts to increase sales through introduction of option pack offer
to her customers. The option pack offer is dependent on the type and model of the van and could
be bought at unique discounted prices.
Analysis and discussion
2.0 Descriptive analysis
Under this, the sales, profits and production of 2017 and 2018 are compared. This enables better
understanding of the business performance and making of informed decisions.
All the vans produced by Eclipse Vans Company were sold and profits made.

2.1 Total profits earned by Eclipse Vans Company between 2017 to 2018.
Figure 1; Total
profits of 2017and
2018
From the figure 1
above, the total profit made in 2017 ($ 1,965,718) was lower compared to the profits made in
2018 ($ 2,582,224). This is because in 2017 Joeline had not yet came up with the idea of
introducing the option pack offer making the total profit made to be less. In 2018 after Joeline
had introduced the option pack offer, the total profit double the total profit made in 2017.
Furthermore this also lead to an increase in sales in that in 2018 almost the vans could be
purchased daily as compared to 2017 in which the vans could be purchased after a couples of
weeks.
2.2 Sales person’s salaries in relation to number of sales
Row Labels Countof Model
SALES01 162
SALES02 191
Total profit 2018 Total profit 2017
$-
$500,000.00
$1,000,000.00
$1,500,000.00
$2,000,000.00
$2,500,000.00
$3,000,000.00

SALES03 248
Grand Total 601
Table 2; Number of sales
Row Labels Sum of Base Salary
2017
Sum of Base Salary
2018
Saleperson 45000 47500
Salesperson 45000 47500
Senior Salesperson 60000 64000
Grand Total 150000 159000
Table 3; Sales person’s salaries
From table 2 above the sales person 3 had the highest sales (248), sales person 2 was the second
highest seller (191) and finally sales person 1 had the least sales of (162) within a period of two
years. This made a greater contribution on the method of payment, making the highest seller to
be the one with the highest pay and commissions .According to table 2, the one with the highest
sales received the highest payment and commission throughout the two years. The commission
and the salary being issued to the sales persons acted as a motivating factor for the sales persons
to sell more vans so as to enable them earn more money from the company.
From table 3, we can see the different salaries issued to the sales persons in 2017 and 2018 .In
2017 the sales persons1and 2 were paid $.45000 while sales person three was paid $.60000

which acted as a motivator for the sales person 3 to sales more in order to earn more hence in
2018 the sales person 3managed to be the highest earner of $. 64000 while sales person 1 and 2
received $.47500.
2.3 Models and sales of vans in Eclipse Vans Company.
Row Labels Sum of Retail Count of

Price Model
Adventurer 50 477000 11
Adventurer
50R
3886800 82
Adventurer 55 4539330 93
Adventurer 65 6252960 112
Escape 36 953910 50
Escape 36R 1403100 64
Escape 42 562800 26
Escape 42R 475170 19
Safari 40 897990 37
Safari 40R 1195830 43
Safari 45 314160 11
Safari 45R 1572900 49
Tourer 85 374400 4
Grand Total 22906350 601
Table 4; Van models and their sales
Adventurer 65 is the most sold van by the eclipse vans company , followed by adventurer 55
and 50R , the least sold vehicle is tourer 85.Tourer 85 sales are low , this is because most
customers do not prefer it due to its high price ($93600) as compared toAdventurer65 which
cost ($55830).Adventurer 65 is more available to the customers since in the past two years
(2017,2018) eclipse vans company produced 112 vans while Tourer 85 only 4 vans were
produced hence low sales of Tourer85 throughout the two years . This is because the customers

are not aware of the product hence choosing to go for Adventurer 65 which is commonly
available to them and are familiar with.
Eclipse vans company should increase the production of adventurer type of vans especially
Adventurer 65 since it is the most preferred type by consumers .Adventurer 65 has the highest
sales compared to Tourer 65 hence generation of much profits to the company.
3.0 Conclusion
The main findings from the report include;
 The total profit made in 2017 ($1,965,718) and that of 2018 is $ 2,582,224.
 The salesperson 3 had the highest sales of 248, followed by the second sales person who
had 191 and finally the first sales person who had 162.
 Adventurer 65 is the most sold van (112) followed by adventurer 55 (93) and then by
adventurer 50R (82).
4.0 Recommendations
Eclipse Vans Company should focus on production of Adventurer 65 vans and reduce the
production of Tourer 85 to maximize on profits.
Joeline should increase issuance of the option pack offer to attract more customers to their
company as it increased in 2018 sales.
The highest sales person should be awarded with a van on top of the commission to motivate
other sales persons to increase their sales in order to earn more commissions and luckily have a
van.

Appendix

Figure 1- screenshot of multiplication function
Figure 2 -screenshot of sum function