Limited Resources

Maria Pajet, a regional sales representative for UniTec Systems, Inc., has been working about 80 hours per week calling on a total of 123 regular customers each month. Because of family and health considerations, she has decided to reduce her hours to a maximum of 160 per month. Unfortunately, this cutback will require Maria to turn away some of her regular customers or, at least, serve them less frequently than once a month. Maria has developed the following information to assist her in determining how to best allocate time:

Customer ClassificationLarge

BusinessSmall

BusinessIndividualNumber of customers83580Average monthly sales per customer$1,500$900$350Commission percentage5%8%10%Hours per customer per monthly visit5.03.02.5

a. Develop a monthly plan that indicates the number of customers Maria should call on in each classification to maximize her monthly sales commissions.

b. Determine the monthly commissions Maria will earn if she implements this plan.

In the first table, calculate the commission per customer and per hour for each customer classification.

In the second table, complete the monthly call/visit plan thatwould maximize Maria's monthly sales commissions. Then determine Maria's monthly commissions if she implements this plan.

Large business

Commissionper customer- Answer?

Commission per hour-Answer?

Small business

Commissionper customer- Answer

Commission per hour-Answer?

Individual

Commissionper customer- Answer

Commission per hour-Answer?

Large business

Total number

of customer- Answer?

Total number

of visit hour-Answer?

Total Commissions-Answers?

Small business

Total number

of customer- Answer?

Total number

of visit hour-Answer?

Total Commissions-Answers?

Commission per hour-Answer

Individual business

Total number

of customer- Answer?

Total number

of visit hour-Answer?

Total Commissions-Answers?

Grand total

Total number

of customer- Answer?

Total number

of visit hour-Answer?

Total Commissions-Answers?