d. Hydropump's marketing manager thinks that the type of channel relationship possible with selective distribution would make it possible to get a large share (40 percent) of the pumps sold by its hot-tub dealers. But he realizes that the actual percent might vary. He thinks that the percent could be as low as 35 percent, or go as high as 45 percent. He wants to evaluate the effect that this might have on expected profits. Do a What If analysis, based on the selective distribution alternative, varying Hydropump's percent of dealer unit sales between 35 percent and 45 percent and displaying Hydropump's unit sales and profit, and then complete the missing numbers in the table below.

e. How important is it that Hydropump win at least a 40 percent share of the dealers' unit sales? Explain your reasons.

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

Expected Unit Sales Expected Profit Percent of Dealer Unit Sales 35 37 9,880 193.200 43 45