LusterLast: Business Year 2019

Last year the company elected to hire a sales force. And, while sales appeared to be good, management wants Ashanti to investigate, which means, of course, that you will investigate.

You are provided with the following data. Your boss wants you to provide her figures on:

• Salesforce Effectiveness based on last year's annual expenses and sales revenue.
• Break-even number of employees.
• Category Performance Ratio

LusterLast Stats

Annual Sales Expenses ($)	Annual Sales ($)	Units Sold (#)	Annual Commissions ($)	Salaries ($)	Bonuses ($)
3,525,000	23,500,000	4,079,861	2,350,000	7,050,000	235,000

Industry Data

Sales Potential ($)	Product Category Volume (%)	All Commodity Volume (%)
350,000,000	23	87

Use your contribution margin from the previous year if necessary. Submit your spreadsheet through the designated drop box. And, this time, instead of providing just commentary, also provide a graph illustrating two relationships you believe are essential and briefly explain your rationale.

Market Sales Revenue ($)	175,000,000
Unit Revenue Sales ($)	23,500,000
Market Share	67
Total Population	350,000,000
Luster Last Purchasers	15,000,000
Market penetration	4%
Total Shampoo con.	105,000,000
LusterLast purchaser	15,000,000
Brand penetration	14%
Margin %	-105.7
Unit margin	-6.09
Contribution margin	-17,298,610
Contribution per unit	-4.24
Channel margin	-5,797,483.09
Marketing as a percentage of sales	10%
extra note red corner
		Amount	percent to sales
Company net loss
Luster Lash Purchasers		15000000
Retention Rate		0.9
Luster Lash Purchasers (retained)	13500000
Unit Selling Price		5.76
Total Sales($)		77760000	100.00%
Less: Discount	7776000
	0.01	7776000	1.00%
Net Sales		76982400	99.00%
Variable Cost	13500000
	10	135000000	173.61%
Negative Margin		-58017600	-74.61%
Less: Acqusition Spending	15000000
		17250000	22.18%
Net Loss		-75267600	-96.79%