It is time for the annual performance review of Go-Com’s account executives. Acc
ID: 453260 • Letter: I
Question
It is time for the annual performance review of Go-Com’s account executives. Account values and hours spent each week acquiring and servicing accounts are shown below. Each agent works approximately 45 weeks out of the year, but the time spent on accounts each week differs considerably. How would you rate the performance of each individual? Which agent is most productive? Which agents show the most potential? PROBLEMS • GO Tutorial Store Annandale Blacksburg Charlottesville Danville Sales volume $40,000 $12,000 $60,000 $25,000 Labor hours 250 60 500 200 Agents Albert Bates Cressey Duong New accounts $100,000 $40,000 $80,000 $200,000 Existing accounts $40,000 $40,000 $150,000 $100,000 Labor hours 40 20 60 80
Explanation / Answer
DATA GIVEN PER WEEK
AGENTS
Albert
Bates
Cressey
Duong
NEW A/C
$ 1,00,000.00
$ 40,000.00
$ 80,000.00
$ 2,00,000.00
EXISTING A/C
$ 40,000.00
$ 40,000.00
$ 1,50,000.00
$ 1,00,000.00
LABOUR HRS
40
20
60
80
TOTAL $ AMOUNT
$ 1,40,000.00
$ 80,000.00
$ 2,30,000.00
$ 3,00,000.00
TOT $ AMOUNT/ HR
$ 3,500.00
$ 4,000.00
$ 3,833.33
$ 3,750.00
$ NEW ACCOUNT AMOUNT/HR
$ 2,500.00
$ 2,000.00
$ 1,333.33
$ 2,500.00
To rate the performance of each individual we need to look which agent produces the higher total dollar amount per hour rate, and also which agent has the potential to acquire more new accounts.
Since the total dollar amount per hour earned is highest for Bates ($ 4000), hence Bates is the most productive amongst the given four agents.
Since both Albert and Duong have the highest Dollar new account amount per hour of $2500, hence both Albert and Duong show the highest potential, but considering the total dollar amount per hour for Duong is higher than Albert, we can conclude that Duong has higher potential than Albert.
DATA GIVEN PER WEEK
AGENTS
Albert
Bates
Cressey
Duong
NEW A/C
$ 1,00,000.00
$ 40,000.00
$ 80,000.00
$ 2,00,000.00
EXISTING A/C
$ 40,000.00
$ 40,000.00
$ 1,50,000.00
$ 1,00,000.00
LABOUR HRS
40
20
60
80
TOTAL $ AMOUNT
$ 1,40,000.00
$ 80,000.00
$ 2,30,000.00
$ 3,00,000.00
TOT $ AMOUNT/ HR
$ 3,500.00
$ 4,000.00
$ 3,833.33
$ 3,750.00
$ NEW ACCOUNT AMOUNT/HR
$ 2,500.00
$ 2,000.00
$ 1,333.33
$ 2,500.00
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