Question
Parol, a regional sales representative for UniTec Systems, Inc., has been working about 80 hours per week calling on a total of 123 regular customers
Parol, 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 Parol 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 classification | |||
Large Business | Small Business | Individual | |
Number of customers | 8 | 35 | 80 |
Average monthly sales per customer | $3500 | $1800 | $800 |
Commission percentage | 5% | 8% | 10% |
Hours per customer per monthly visit | 5.0 | 3.0 | 2.5 |
a. Develop a monthly plan that indicates the number of customers Parol should call on in each classification to maximize her monthly sales commissions.
b. Determine the monthly commissions Parol 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 that would maximize Parol's monthly sales commissions. Then determine Parol's monthly commissions if she implements this plan.
Commision per customer | Commision per hour | ||||
Large Business | $....... |
|
| ||
Small business |
|
| |||
Individual |
|
|
Total number of customers | Total number of visit hours | Total commisions | ||
Large business | $.. | $.. | $... | |
Small business | $... | $... | $... | |
Indiividual | $... | $... | $... | |
Grand totals: | $... | $... | $... |
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