Question
Hatelak, a sales representative for a manufacturing equipment company, has decided to spend less time traveling. He is going to spend only 172 hours per
Hatelak, a sales representative for a manufacturing equipment company, has decided to spend less time traveling. He is going to spend only 172 hours per month with his customers. He will have to give up some of his clients. The following information is from his last full month's sales activities.
LargeMediumSmall
CustomersCustomersCustomers
Number of customers20100160
Average sale per customer$6,000$2,000$1,200
Commission (% of sales $)10%7%5%
Average time per customer6 hours4 hours3 hours
a.What should be his customer mix in order to maximize his sales commissions?
b.What will be his income at the best possible customer mix?
c.What will be his income if he works an additional hour per month giventhat he made the best possible customer mix?
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