Question
Based on the initial spreadsheet (see below), which approach seems to be the most sensible for Hydropump? Why? SPREADSHEET FOR CALCULATIONS Intensive Distribution Selective Distribution
Based on the initial spreadsheet (see below), which approach seems to be the most sensible for Hydropump? Why?
SPREADSHEET FOR CALCULATIONS
| Intensive Distribution | Selective Distribution |
Number of Retailers | 5600 | 280 |
Retailers per Sales Rep | 300 | 70 |
Sales Reps Needed | 19 | 4 |
Salary per Sales Rep | 18000.00 | 18000 00 |
Personal Selling Expense | 342000,00 | 72000.00 |
Mass-selling Expense | 200000.00 | 50000.00 |
Overhead Cost | 120000.00 | 80000.00 |
Cost to Produce a Pump | 35.00 | 35.00 |
Total Pumps Sold by Dealers | 175000 | 26000 |
Hydropump's Percent of Dealers' Units | 14.00 | 40.00 |
Total Expected Units | 24500 | 10400 |
Price to Retailers | 70.00 | 75.00 |
Hydropump Total Revenue | 1715000.00 | 780000.00 |
Hydropump Total Cost | 1519500.00 | 566000.00 |
Hydropump Profit | 195500.00 | 214000.00 |
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