question 1:

Stewart Harper, a financial planner, contacts and meets with local individuals to assist with financial planning and investments in Stewart's employer's investment services company. Stewart 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. Stewart's employer pays ofce and phone costs and also reimburses Stewart for businessrelated travel. Satisfied clients have recommended Stewart to their friends, and Stewart now nds himself with more clients than he can handle in the 45 hours per week he would like to work. To analyze where to most protably spend his time, Stewart 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 followup time for the clients. Stewart will introduce clients he is unable to serve to one of his colleagues. @ (Click the icon to view the customer data.) Read the @uirements. CUSTOMER GROUP A B C Average investment in company products per month $ 800 $ 900 $ 100 Hours devoted per customer per month 2.0 1.5 0.5 Average commission percentage 5% 4% 3% Current number of customers 30 70 130 Clients in group A are generally interested in hearing about new investment products that Stewart's company is offering and will usually invest sizable amounts in new products after meeting with Stewart 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 Stewart 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 Stewart. However, Stewart maintains Requirement (a) Based on the data given, what client mix will maximize Stewart's monthly commissions, assuming he works 180 hours per month? Complete the analysis by computing the average commission per hour and then computing the hours that Stewart is currently devoting to each customer group and the hours that Stewart will devote assuming he works 180 hours per month. Average commission Hours per customer per monthly VISIt aw HDDEU\" UDUIU' Average commission per hour Current demand (hours) USU Hours allocated per month Gilmark Company has 10,000 obsolete lamps carried in inventory at a cost of $11.00 each. They can be sold as they are for $3.50 each. They can be reworked, however, at a total cost of $48,000 and sold for $10.50 each. Requirement Determine whether it is worthwhile to rework these lamps. First determine the formula to calculate the net return under each alternative, then calculate the net return under each alternative. (Complete all input cells. Enter a "0" for amounts with a zero balance.) Sales price per unit - Additional cost per unit = Net return Sellasis E= Sell after rework - S = S Gilmark Company rework the lamps