Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hatelak, a sales representative for a manufacturing equipment company, has decided to spend less time traveling. He is going to spend only 172 hours per

image text in transcribed
Hatelak, a sales representative for a manufacturing equipment company, has decided to spend less time traveling. He is going to spend only 172 hours per month with his customers. To do this he will have to give up some of his clients. The following information is from his last full month's sales activities. Large Medium Small Customers Customers Customers Number of customers 20 160 Average sale per customer $6,000 $2,000 $1,200 Commission (% of sales $) 10% 7% 5% Average time per customer 6 hours 4 hours 3 hours 1001 Required: a. What should be his customer mix in order to maximize his sales commissions? (3 marks) b. What will be his income at the best possible customer mix? (3 marks) c. What will be his income if he works an additional hour per month given that he made the best possible customer mix? (4 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Organizational Behavior Improving Performance And Commitment In The Workplace

Authors: Jason Colquitt

8th Edition

126412435X, 9781264124350

More Books

Students also viewed these Accounting questions