Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Case: A sales manager is planning a new time and territory management program to make time investment decisions. In order to establish an efficient plan,

Case: A sales manager is planning a new time and territory management program to make time investment decisions.

In order to establish an efficient plan, the manager classified the accounts in priority order applying a simple A, B, C, D, E designation of categories as follow:

  • A accounts: Top 10% of the accounts generating 65% of sales

  • B accounts: next 20% of the accounts generating 20% of sales

  • C accounts: next 50% of the accounts generating 10% of sales

  • D accounts: next 10% of the accounts generating 3% of sales

  • E accounts: next 10% of the accounts generating 2% of sales

Distribution of sales

Customer Classification

Percentage of Customers

Percentage of Total Sales Volume

A

10

65

B

20

20

C

50

10

D

10

3

E

10

2

Total

100

100

If the group of accounts are classified as follow:

Group of Accounts

Accounts

Expected Value

A

$100,001 and over

B

$50,001-100,000

C

$30,001-50,000

D

$20,001-30,000

E

Under 20,000

And, the call frequency patterns based on potential and return on time invested are as follow:

Call Frequency Pattern

Accounts

Weeks Between Calls

Number of Accounts

A

2

10

B

4

20

C

6

45

D

8

12

E

10

10

Thus, a call cycle in this territory will cover two weeks. This means that in eery two weeks cycle the salesperson will call on these accounts:

  • All of the As

  • Half of the Bs

  • One-third of the Cs

  • One quarter of the Ds

  • One-fifth of the Es

Question:

Using the above information, the call frequency patterns and following table, develop a sales call cycle.

Call Cycles

Account

Number of

Cycle

Cycle

Cycle

Cycle

Cycle

Classification

Accounts

1

2

3

4

5

A

B

C

D

E

Number of Calls

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Forensic And Investigative Accounting

Authors: Larry Crumbley, Lester E. Heitger, G. Stevenson Smith

4th Edition

0808021435, 9780808021438

More Books

Students also viewed these Accounting questions

Question

Why is it important to analyze your spending habits?

Answered: 1 week ago