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g. With this change in the sales force, Hydropump's manager is confident that the firm will get at least 40 percent-and perhaps as high as 50 percent-of the pumps sold by the dealers. Evaluate Hydropump's likely profit in this situation-and then compare it with your previous analysis (above). Would you recommend that Hydropump add the extra sales reps? Discuss your reasons. SPREADSHEET FOR CALCULATIONS Intensive Selective Distribution Distribution Number of Retailers 560 280 Retailers per Sales Rep 300 70 Sales Reps Needed 19 4 Salary per Sales Rep 8000.00 8000 00 Personal Selling Expense $42000,00 2000.00 Mass-selling Expense 200000.00 0000.00 Overhead Cost 20000.00 30000.00 Cost to Produce a Pump 35.00 35.00 Total Pumps Sold by Dealers 17500 26000 Hydropump's Percent of Dealers' Units 14.00 40.00 Total Expected Units 2450 1040 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

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