Limited Resources Maria Pajet, a regional sales representative for UniTec System
ID: 2337711 • Letter: L
Question
Limited Resources 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: Large Small Number of customers Averoge monthly soles per customer Commission percentage Hours per customer per monthly visit Business Business Individual 80 $350 10% 2.5 $1,500 5% 5.0 35 5900 896 3.0 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. Commission per customer per hour Large business 75 72 35 15 Small business 24 14 V Total number of customers Total number of visit hours Total commissions Large business 40 105 200 X 600 Small business 35 2,520 Individual 80× 2,800 X Grand totals 123 X 345X $ 5,920Explanation / Answer
Answer
No. of hours available
160
Large Business:
Total no. of customer
8
Hrs per customer per monthly visit
5
Hours used for Large Business
40
Remaining hours
120
Small Business:
Total no. of customer
35
Hrs per customer per monthly visit
3
Hours used for Small Business
105
Remaining hours for Individual
15
Hours needed for Individual visit
2.5
No. of customers (Individual) that can be handled
6
Total no. of customer
Total no. of visit hours
Total Commission
Large Business
8
40
$ 600.00
Small Business
35
105
$ 2,520.00
Individual
6
15
$ 210.00
Grand Totals
49
160
$ 3,330.00
No. of hours available
160
Large Business:
Total no. of customer
8
Hrs per customer per monthly visit
5
Hours used for Large Business
40
Remaining hours
120
Small Business:
Total no. of customer
35
Hrs per customer per monthly visit
3
Hours used for Small Business
105
Remaining hours for Individual
15
Hours needed for Individual visit
2.5
No. of customers (Individual) that can be handled
6
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