Maria Pajet, a regional sales representative for UniTec Systems, Inc., has been
ID: 2539878 • 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 considerations, 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:
a. Develop a monthly plan that indicates the number of customers Maria should call on in each classification to maximize her monthly sales commissions.
b. Determine the monthly commissions Maria will earn if she implements this plan.
In the first table, calculate the commission per customer and per hour for each customer classification.
In the second table, complete the monthly call/visit plan that would maximize Maria's monthly sales commissions. Then determine Maria's monthly commissions if she implements this plan.
Total number
of customers
Total number
of visit hours
Total
commissions
Customer Classification LargeBusiness Small
Business Individual Number of customers 8 35 80 Average monthly sales per customer $4,500 $2,400 $1,100 Commission percentage 5% 8% 10% Hours per customer per monthly visit 5.0 3.0 2.5
Explanation / Answer
a.
Working:
b.
Working:
Commission per customer Commission per hour Large business $225 $45 Small business $192 $64 Individual $110 $44