Sales Metrics Assignment

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