Question
The hogarth corporation evealuates its sales force's preformance by using quotas. The following quotas have been set for three of the firms sales people: SALES
The hogarth corporation evealuates its sales force's preformance by using quotas. The following quotas have been set for three of the firms sales people:
| SALES PERSON | SALES VOLUME | GROSS MARGIN | NUMBER OF CALLS |
| D. Elmer | $320,000 | $60,000 | 23 |
| J. Spencer | $300,000 | $50,000 | 25 |
| T. Farrell | $350,000 | $58,000 | 21 |
The results were as follows:
| SALES PERSON | SALES VOLUME | GROSS MARGIN | NUMBER OF CALLS |
| D. Elmer | $330,000 | $58,000 | 25 |
| J. Spencer | $350,000 | $55,000 | 21 |
| T. Farrell | $340,000 | $60,000 | 28 |
Compute the Performance Index for each sales person for sales volume, gross margin and number of calls if the performance index (PI) = (actual results/ sales quota)*100%
| SALES PERSON | SALES VOLUME | GROSS MARGIN | NUMBER OF CALLS |
| D. Elmer | |||
| J. Spencer | |||
| T. Farrell |
Which sales person scored best on Volume quotas ALONE?
Which sales person scored best on BOTH volume and financial quotas?
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Economics of Strategy
Authors: David Besanko, David Dranove, Mark Shanley, Scott Schaefer
6th edition
978-1118273630, 111827363X, 978-1118319185
