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Kimble Products:
Is There a Difference In the Commissions?

At the January national sales meeting, the CEO of Kimble Products was questioned extensively regarding the company policy for paying commissions to its sales representatives.The company sells sporting goods to two major markets. There are 40 sales representatives who call directly on large volume customers, such as the athletic departments at major colleges and universities and professional sports franchises. There are 30 sales representatives who represent the company to retail stores located in shopping malls and large discounters such as Kmart and Target.

Upon his return to corporate headquarters, the CEO asked the sales manager for a report comparing the commissions earned last year by the two parts of the sales team. The information is reported on the right. Write a brief report. Would you conclude that there is a difference? Be sure to include information in the report on both the central tendency and dispersion of the two groups.

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$2.19