Mk 4010- Metrics Homework 2

# Mk 4010- Metrics Homework 2 - 1 How many people can they...

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1. How many people can they afford to hire? 12-14% sales force expenses, 16.2 million in sales, Take average of 13% for selling expenses 16.2 million * .13= \$2,106,000 *.16= \$336,960 field sales management 2,106, 000 – 336960 = \$1,769,040 available for salesperson comp 88,000 per salesperson 1769040/88000= 20.1 so they can hire 20 sales people 2. a. 33000+42500+6700+82200+18900= 101,100 total comp 22400+5900+6200+2800+1650+1700=40,650 total selling exp 260- 15-10-5-12-8=210 net selling days * 6.5= 1365 calls per year (101,100+40, 650)/1365 = \$103.85 cost per call b. (3.4 calls* \$ 103.85)/ (.115)= \$3070.35 b.e. sales volume c. (3.4*103.85)/ (.36)= \$980.80 b.e. sales volume using gross margin as the requirement is less stringent than using sales cost %, because gross margin % produces a smaller number because it is essentially multiplying by a smaller number, produces just enough to break even on the sale, but doing this over time wouldn’t be breaking even because of fixed costs that have to be covered 3. Performance

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## This note was uploaded on 12/08/2011 for the course MK 4010 taught by Professor Edrigdon during the Fall '11 term at Georgia State.

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Mk 4010- Metrics Homework 2 - 1 How many people can they...

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