Michael Hart, a financial planner, contacts and meets with local individuals to assist with financial planning and investments in Michael's employer's investment services company. Michael receives no fee for financial planning advice, but in addition to his salary, he receives commissions on client investments in the investment services company. Commission rates vary across different investment products. Michael's employer pays office and phone costs and also reimburses Michael for business-related travel. Satisfied clients have recommended Michael to their friends, and Michael now finds himself with more clients than he can handle in the 50 hours per week he would like to work. To analyze where to most profitably spend his time, Michael has classified his current set of customers into the three groups listed here. The hours devoted per customer include direct contact time, travel time, and research and follow-up time for the clients. Michael will introduce clients he is unable to serve to one of his colleagues. E (Click the icon to view the customer data.)

ABC

Average investment in company products per month _1000__700__300_

Hours devoted per customer per month __2.5____1____0.5__

Average commission percentage __6%____5%____1%__

Current number of customers __30____80_____100___

Clients in group A are generally interested in hearing about new investment products that Michael's company is offering and will usually invest sizable amounts in new products after meeting with Michael or conversing with him on the phone. Clients in group B will also invest but generally in smaller amounts than clients in group A. Clients in group C appreciate meeting with Michael because of the excellent advice he provides in planning for retirement and other future expenses but have little discretionary income to invest. Group C clients also generally invest in products with a lower commission rate for Michael. However, Michael maintains contact with these clients because he anticipates they will become more profitable as their careers develop.

Requirement (a) Based on the data given, what client mix will maximize Michael's monthly commissions, assuming he works 200 hours per month? Complete the analysis by computing the average commission per hour and then computing the hours that Michael is currently devoting to each customer group and the hours that Michael will devote assuming he works 200 hours per month.

ABC

Average commission ______________________

Hours per customer per monthly visit ______________________

Average commission per hour______________________

Current demand (hours)______________________

Hours allocated per month ______________________

Please Fill the table and explain to me how you calculate them. thanks