Sep 28, 2017 term paper 2

USING THE FOLLOWING INFORMATION, CALCULATE THE TOTAL SALESFORCE SIZE NECESSARY BY USING EACH OF…

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Using the following information, calculate the total salesforce size necessary by using each of the following approaches: breakdown, workload, and incremental. (Your answers may vary because each piece of information does not apply to the same company.) Be sure to show your work. Also, explain the advantages and disadvantages of each approach. Which approach would you recommend using to determine salesforce size? Why? • Sales of $80 million are forecast for next year. • Fifteen thousand calls are needed in the market area to be covered. • Salespeople generate an average of $2 million in annual sales. • A salesperson can make an average of 500 annual sales calls. • Marginal salesperson cost is $65,000. With 88 salespeople, the marginal salesperson profit contribution is $75,000. This profit contribution decreases by $5,000 with each additional salesperson added to the base of 88 salespeople. Marginal salesperson cost remains constant. • Turnover is 10 percent annually.


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