$1.$ Your Forecasted sales volume is $$2\mathrm{.}3$ million for the quarter

We will use previous output to estimate salesperson productivity, based on the values below.

Units Sold Q$2$

Salesperson $1$ $$250,000$

Salesperson $2$ $$238,000$

Salesperson $3$ $$320,000$

Salesperson $4$ $$180,000$

Salesperson $5$ $$209,000$

Total $$1,197,000$

Use the breakdown method to estimate the number of salespeople needed based on the

averages gleaned from the above information.

$2.$ Use the workload method to estimate the number of salespeople needed to meet your

sales goals:

a$.$ Step $1$: The customers have been segmented into the following categories based on

their order size $($this step may not be provided for sales managers in practice, but

we$$re starting here now$).$ Calculate the workload to cover the market.

Type Average Order Size Number Frequency of Calls Call Duration

Type A Large $17224$ times$/$year $45$ min $/\mathrm{.}75$ hrs

Type B Medium $30012$ times$/$year $30$ min $/\mathrm{.}5$ hrs

Type C Small $5206$ times$/$year $15$ min $/\mathrm{.}25$ hrs

Example: Type A$-150*(\mathrm{.}75*24)=2700$ hours per year

b$.$ Step $2$: Determine the available time per salesperson

$$ There are $48$ workweeks per year

$$ Employees work an estimated $10$ hours per day, $5$ days per week

c$.$ Step $3$: Determine how many hours per year should be spent actually selling using

the apportion of time below:

Time$=$ value from b$*$ time allocation

Activity Time Spent $\%$:

Selling $45\%$

Non$-$selling $35\%$

Traveling $20\%$

d$.$ Step $4$: Calculate the number of salespeople you will need::

Number of salespeople$=$ total number of hours needed$/$ the hours available by salespeople

$3.$ The sales team from problem $2$ secures $22$ more large order clients. How many more

salespeople will they need to accommodate $194$ Type A clients, compared to $172?$

$4.$ You forecast that you will make $$5\mathrm{.}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?

$5.$ What does it mean to have a large span of control? What is one advantage associated

with a large span of control?