Develop a profit-and-loss statement for the Westgate division of North Industries. This division manufactures light fixtures sold to consumers through home improvement and hardware stores. The sales revenue was $40 million last year from sale of 200,000 fixtures. Cost of goods sold represents 40% of sales. Marketing expenses include selling expenses, promotion expenses, and freight. Selling expenses include sales salaries totaling $3 million per year and sales commissions (5% of sales). The company spent $3 million on advertising last year, and freight costs were 10% of sales. Other costs include $2 million for managerial salaries and expenses for the marketing function and another $3 million for indirect overhead allocated to the division. 10. Westgate has decided to hire service representatives to implement a proactive service call strategy to address service issues using the following approach. Customers were divided into 4 groups based on the contribution to the company profit. Large customers who accounted for 40% of the profit were grouped as Class A customers. Given the importance of these customers, service representatives call on Class A customers 20 times a year. These service representatives meet with multiple groups within the firm and spend about 1.5 hours for each call. The next group of large customers were grouped as Class B customers and were visited once every month with each call lasting about 45 minutes. The next two groups accounted for 35% of the profits. Service reps make a regular call every 2 months to Class C customers and spend about 20 minutes each. Class D customers are visited once every three months for 20 minutes call. Table 1 below provides you the call frequency for customer groups. Table 1 Number Call Class of Custome No of Calls per Year per Customer % Profit Provided by the Customer Segment of Duration Minutes/Cal Customer 20 70 40% 20 90 300 25% 45 800 20% D 1830 15% 20 Total 3000 100% At Westgate employees work 40 hours per week and have 4 weeks of vacation time per year. Workload research shows that sales and service employees spend about 23.7% of their time in travelling, 16.3% in report writing and administrative tasks, 15% of the time in in departmental meetings and the remaining 45% in face-to-face service calls. a. Determine the number of service representatives Westgate need to hire using the workload approach. b. Service representatives are paid a salary of $ 65,000 per year. Firms incurs an additional 40% of the salary in benefits. Determine the new break-even sales in units and $. Develop a profit-and-loss statement for the Westgate division of North Industries. This division manufactures light fixtures sold to consumers through home improvement and hardware stores. The sales revenue was $40 million last year from sale of 200,000 fixtures. Cost of goods sold represents 40% of sales. Marketing expenses include selling expenses, promotion expenses, and freight. Selling expenses include sales salaries totaling $3 million per year and sales commissions (5% of sales). The company spent $3 million on advertising last year, and freight costs were 10% of sales. Other costs include $2 million for managerial salaries and expenses for the marketing function and another $3 million for indirect overhead allocated to the division. 10. Westgate has decided to hire service representatives to implement a proactive service call strategy to address service issues using the following approach. Customers were divided into 4 groups based on the contribution to the company profit. Large customers who accounted for 40% of the profit were grouped as Class A customers. Given the importance of these customers, service representatives call on Class A customers 20 times a year. These service representatives meet with multiple groups within the firm and spend about 1.5 hours for each call. The next group of large customers were grouped as Class B customers and were visited once every month with each call lasting about 45 minutes. The next two groups accounted for 35% of the profits. Service reps make a regular call every 2 months to Class C customers and spend about 20 minutes each. Class D customers are visited once every three months for 20 minutes call. Table 1 below provides you the call frequency for customer groups. Table 1 Number Call Class of Custome No of Calls per Year per Customer % Profit Provided by the Customer Segment of Duration Minutes/Cal Customer 20 70 40% 20 90 300 25% 45 800 20% D 1830 15% 20 Total 3000 100% At Westgate employees work 40 hours per week and have 4 weeks of vacation time per year. Workload research shows that sales and service employees spend about 23.7% of their time in travelling, 16.3% in report writing and administrative tasks, 15% of the time in in departmental meetings and the remaining 45% in face-to-face service calls. a. Determine the number of service representatives Westgate need to hire using the workload approach. b. Service representatives are paid a salary of $ 65,000 per year. Firms incurs an additional 40% of the salary in benefits. Determine the new break-even sales in units and $