Decision Science

Sales people have 1 million dollar quota per year

Average size accounts is $100k per year

Closing ratio is 20% (1 out of 5)

Each month that passes in the year equals less time to capture sales from the new customer. For example, if an account is sold in month 1 it is worth $100k, if it is sold in the last month of the year it is only worth $8,333.33 ($100k/12).

Write an equation that shows how many potential accounts the salesperson should be working on and sell each new month in order to ensure that they are hitting their quota.