Application 10-1 You are Jordan Smith, a newly hired sales representative for High-Tech Machinery Inc., a manufacturer of electrical components. Today is your first day on the job. Your predecessor, Mary Johnson, took a different job within the company. On your first day, Mary emailed you a spreadsheet with the information below. Your territory has exactly 20 customers and generates more than $40 million annually. That means you have some big shoes to fill! To make things easier, Mary color-coded the spreadsheet, such that accounts who spend the most are in (dark) green and accounts who spend the least are in (dark) red. Customer Company A This Year Revenue $91,369 Percent of Territory Revenue Current Classification (Priority) 0.21% A Company B $6,181,455 14.38% Company C $72,170 0.17% Company D $454,552 1.06% B Company E $44,038 0.10% Company F $2,058,453 4.79% B Company G $11,822,085 27.51% Company H $76,232 0.18% AC Company I $670,613 1.56% B Company J $4,932,226 11.48% C Company K $410,589 0.96% B Company L $9,297,098 21.63% A Company M $572,234 1.33% A Company N $60,311 0.14% C Company O $1,828,564 4.25% C Company P $13,739 0.03% B Company Q $1,248,230 2.90% B Company R $22,740 0.05% B Company S $907,094 2.11% B C Company T $2,213,339 5.15% Total Territory $42,977,131 Revenue: Revenue $42,977,131 You remember from your coursework in college that, in many sales territories, something like the 80/20 rule exists. You remember hearing about "the law of the vital few." You also remember that, in order to be an effective territory manager, you must prioritize. With this in mind, Mary's spreadsheet also contains her existing account classification. Mary used an ABC account approach to prioritizing customers within the territory. As a new salesperson, you have several responsibilities in the coming weeks. However, you want to start thinking about prioritizing your accounts as soon as possible. 1. Thinking about the 80-20 rule, consider the four largest customers in the territory. What percentage of total territory sales comes from these four customers? 2. Based on current revenue alone and Mary's classification approach, which accounts should probably not be considered A accounts? 3. Based on current revenue alone and Mary's classification approach, which accounts should probably be considered an A account