Question

E4-27. Limited Resources

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 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:

Customer Classification	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 monthly visit	5.0	3.0	2.5

Required

a. Develop a monthly plan that indicates the number of customers Maria should call on in each

classification to maximize her monthly 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?

Please, show calculations