Advanced : Construction of sales performance measures A company sells a large number of products that are accessories for a certain class of machine For the UK it has nine salesmen, each of whom is responsible for sales 1n a separate territory Estimates of total market potential are £6.0 million and £7.1 million for 1981 and 1982 respectively .

Data for two individual salesmen and for the company as a whole are:

You are required:

(A) for the average of all nine salesmen and for each of salemen Abbot and Bartram for 1982, to calculate:

(a) (i) sales potential;
(ii) sales penetration percentages;
(iii) sales potential per account.

(b) eight relevant indices that would help assess the performance of each salesman.
These indices should be developed from the data given under the following five headings:
(i) customers;
(ii) gross margin;
(iii) calls made;
(iv) remuneration;
(v) expenses.
At least one index should be calculated for each heading.
(B) to assess he performance of Bartram for 1982 based on a combination of the data in (A) above plus any other data that you may consider relevant.

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Territory Total UK (including territories 2 1 and 2) Territory area (000 sq. km) 7.30 15.40 230.90 Number of machines in territory (millions) 1.65 0.83 12.80 Potential number of accounts 699 423 5965 Salesmen Abbott Bartram 1981: Sales (2000) 97 101 1211 Customers (number of accounts) 412 323 3318 Gross margin (2000) 34 39 426 Calls made 1410 1163 10901