Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Old MathJax webview how is the question this question incomplete?? Question 2 You Branch is in the process of introducing a new sales campaign to
Old MathJax webview
how is the question this question incomplete??
Question 2 You Branch is in the process of introducing a new sales campaign to support sales efforts of new deposit sales. Your Branch operations manager has proposed the following as the key components of the campaign which is planned to run for 3 months. As a result of the campaign, 6800 current accounts will be sold, with average funding rate of 50% and an is also anticipated to deliver new sales of 1500 Savings accounts and with an average funding rate of 70% and an average ticket size of ZMW1500 per account. One fifth of each product will be sold in the first month while the Balance will be sold equally in the each of the subsequent two months of the campaign period. Current accounts attract ledger fees of K25 per account while Savings accounts attract ledger fees of K40 per account. FTP credits are awarded at a rate of 16% p.a for local currency current deposits wile a rate of 26% p.a for local currency savings deposits. Staff that successfully engage in the sales campaign will be paid 2% of the total deposit values which they bring in, and the Branch will bear the tax on their earnings over the campaign period. The staff incentives will be paid in each of the months when new business is brought in. The marketing department has agreed with the branch manager to print tent cards and danglers costing ZMW40,000, and this expense will be incurred in month one. Required Put up a financial business case for the proposed sales campaign and recommend whether the campaign should be undertaken or not purely on financial grounds. Question 2 You Branch is in the process of introducing a new sales campaign to support sales efforts of new deposit sales. Your Branch operations manager has proposed the following as the key components of the campaign which is planned to run for 3 months. As a result of the campaign, 6800 current accounts will be sold, with average funding rate of 50% and an is also anticipated to deliver new sales of 1500 Savings accounts and with an average funding rate of 70% and an average ticket size of ZMW1500 per account. One fifth of each product will be sold in the first month while the Balance will be sold equally in the each of the subsequent two months of the campaign period. Current accounts attract ledger fees of K25 per account while Savings accounts attract ledger fees of K40 per account. FTP credits are awarded at a rate of 16% p.a for local currency current deposits wile a rate of 26% p.a for local currency savings deposits. Staff that successfully engage in the sales campaign will be paid 2% of the total deposit values which they bring in, and the Branch will bear the tax on their earnings over the campaign period. The staff incentives will be paid in each of the months when new business is brought in. The marketing department has agreed with the branch manager to print tent cards and danglers costing ZMW40,000, and this expense will be incurred in month one. Required Put up a financial business case for the proposed sales campaign and recommend whether the campaign should be undertaken or not purely on financial groundsStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started