Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Using the information provided below, calculate the total salesforce size necessary by using each of the following approaches: Breakdown Workload Incremental Your answers may vary

Using the information provided below, calculate the total salesforce size necessary by using each of the following approaches:

  • Breakdown
  • Workload
  • Incremental

Your answers may vary because each piece of information does not apply to the same company. Be sure to show your work. Summarize your approaches in 2-3 pages and provide support/rationale for which approach is most effective. Finally, explain the advantages and disadvantages of each approach and discuss which approach you would recommend using to determine salesforce size and why.

  • Sales of $80 million are forecast for next year.
  • Fifteen thousand calls are needed in the market area to succeed.
  • Salespeople generate an average of $2 million in annual sales.
  • A salesperson can make an average of 500 annual sales calls.
  • Marginal salesperson cost is $65,000. With 88 salespeople, the marginal salesperson profit contribution is $75,000. This profit contribution decreases by $5,000 with each additional salesperson added to the base of 88 salespeople. Marginal salesperson cost remains constant.
  • Turnover is 10% annually.

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_2

Step: 3

blur-text-image_3

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

Observation And Audit Techniques For Measuring Retail Sales

Authors: Earl E. Houseman

1st Edition

0428139841, 978-0428139841

More Books

Students also viewed these Accounting questions