Maria Pajet, a regional sales representative for UniTec Systems Inc. has been wo
ID: 2523820 • Letter: M
Question
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 consider-
ations, 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 clas-
sification 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
Explanation / Answer
(a) (b) Statement Showing Monthly plan to indicate No. of Customer maria Should call and commission will earn S. No. Particular Large Business Small Business Individual a Number of Customers ( in No.) 8 35 80 b Average monthly sales per customer $2,500 $1,500 $600 c Commission percentage 5% 8% 10% d Hours per customer per month visit ( in Hour) 5 3 2.5 e=a*b*c sales commission per month $1,000 $4,200 $4,800 f=a*d No. of Hours per month spend 40 105 200 g=e/f Sales commission earned per hour $25 $40 $24 Ranking to earn sales comission/Hour II I III h Allocation of Availble 160 Hours on the basis of Ranking 40 105 15 (8*5) (35*3) (160-105-40) i=h/d A)no of customer should call 8 35 6 j=i*b*c B) Monthly commission based on plan 1000 4200 360 C) Based on above plan individual customer are served last which is having highest customer base (80) and commission percentage (10%) and hence we will lose 74 customers (80-6).