calculate how the 10 percent discount would affect profit contributions from this account next year. You are solving for the amount of sales that are projected (include the 10% discount requested ) and the resulting profit contribution as well as your commission.

Develop and justify a call schedule U territory. 3. You have just finished your annual account review of the telecom purchases of one of you last your largest customers. It purchased $125,000 worth of telecom equipment from year but indicate that it wants a 10 percent discount on next year's purchases or it switch its business to one of your competitors. Technical, installation, and other acc t services that were provided to this customer last year totaled $11,000 and are expeced to be about the same next year. You earn a commission of 10 percent on sales. Last year this account's gross margin was 40 percent, and they are expected to purchase a simila quantity of equipment next year. Assuming that the list price for the equipment would AL: "LEAD GENERATION" 109 be the same as last year, but discounted by 10 percent, how would the discount affect the profit contributions this account is estimated to generate next year? 7 Last Year Percent Next Year Percent 100% 100% Sales Cost of Goods Sol Gross Margin -Service Costs Sales Commissions Profit Contributions SO Instructions: Insert the appropriate dollar figures for last year's sales (B2) and account service costs (B5). The remaining figures for calculating last year's profit | contribution will be calculated in dollars and as a percent of sales To complete the projection for next year, you need only insert in column F the appropriate dollar figures for sales (F2), cost of goods sold (F3) and account service costs (F5) Gross margin, sales commissions, and profit contributions will be automatically calculated from the figures your provide for next year 2 3-3 eady