Sales Metrics Assignment

Complete each of the questions below and submit your answers for grading. Point form answers are
preferred. Refer to the information in Lecture 3 for help completing these questions.
Students can
submit the answers in Word, Excel, or through scanned hand
–
written responses (do NOT submit PDF
files). All submissions must be made in Moodle. Papers will be graded and returned via Moodle.
1) Using the information in the table below determ
ine whether or not Royal Siding should hire
three
sales rep
s
using Incremental Method.
Hint: Recreate th
e table on Slide 19 in Lecture 3
.
Data for Q.1:
Each sales rep is paid $50,000.
Total
estimated
revenue with the number of reps shown is as follows:
1 rep:
$125,000
2 reps: $200,000
3 reps
: $265,000
Total estimated profit with the number of reps is as follows:
1 rep: $75,000
2 reps: $150,000
3 reps: $1
1
5,000
2) Use the Workload Method to determine the sales force size needed to cover a market of 2,500
businesses with the following breakout:
(Hint: See Slide 18 in Lecture 3.
50% are C
–
accounts that should be visited 4 times a year for 30 minutes each time
45% are B
–
accounts that should be visited once monthly for 60 minutes each time
5% are A
–
accounts t
hat should be visited weekly for 45 minutes each time.
Assume the following average work week for each sales rep:
Selling time: 10 appointments each week averaging 1.5 hours each
Travel time: 6 hours a week
Paperwork/administration: 4 hours a week
Servicin
g existing clients: 5 hours a week
Prospecting/research: 5 hours
Total hours: 35 hours a week
Assume that sales reps work for 48 weeks a year and have four weeks of vacation time.
3) Using the quota plan shown, calculate the quota attainment for each of
the sales reps in the table
below. Which reps appear to be the best reps in terms of quota attainment? (Hint: See Slide 22 in
Lecture 3.)
a) Quota Plan:
Activity Quota: Calls/week with a goal of 100/week weighted at 20%
Sales Volume Quota: Gross sales wi
th a goal of $1,000/week weighted at 50%
Financial Quota: Net profit with a goal of $500/week weighted at 30%
Rep
Calls/Week
Gross Sales/
Week
Net Profit/
Week
Oliver
75
$850
$100
Susan
125
$900
$450
Martin
150
$1,500
$750
Clara
145
$1,750
$800
Stephanie
100
$1,000
$500
b) How would the
results change
if the quotas were all equally weighted? Would the results be different
in terms of which reps were the best?
4. Customer Lifetime Value (LTV)
Assuming that the average customer will use their s
mart phones until they are 85 years old, what is the
LTV for each of the following customers? Assume that their average monthly smart phone cost will
remain the same throughout their lives.
Hint: This is discussed in detail in class. Plan to attend!
Custom
er
Current Age
Monthly
Cost
Shelly
18
$25
Bruce
52
$72
Khalid
27
$30
Nathan
22
$19
Chloe
24
$27
Brenda
37
$35
Dave
42
$39