Question
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
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 hours 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:
Large Business | Small Business | Individual | |
Number of Customers | 8 | 35 | 80 |
Average monthly sales per customer | $2,500 | $1,500 | $600 |
Commission percentage | 5% | 8% | 10% |
Hours per customer per month visit | 5.0 | 3.0 | 2.5 |
Required:
A - Develop a montly plan that indcates the number of customers Maria should call on in each classification to maximize her montly sales commissions.
B - Determine the monthly commissions Maria will earn if she implements this plan.
C - Give one or two reasons why Maria might decide not to follow the conclusions of the above analysis entirely?
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