Question
1. The sales team from problem 2 secures 22 more large order clients. How many more salespeople will they need to accommodate 172 Type A
1. The sales team from problem 2 secures 22 more large order clients. How many more salespeople will they need to accommodate 172 Type A clients, compared to 150?
2. You forecast that you will make $5.3 million in sales in 2023. You have 12 salespeople currently, who generate an average of $150,000 per person. How many people should you hire if you are using the breakdown method to estimate the number of salespeople needed?
3. Assume the law of diminishing returns is at play in your sales team. If we assume salesperson output is not linear, will we need more or fewer salespeople than we calculated in problem 4 to reach our end goal? Why?
4. What are the advantages and disadvantages of the Incremental Method? When may you NOT want to use this method?
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