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Other Fields Homework Help Economics Topic started by: StormLrd on Nov 7, 2017



Title: John Hatelak, a sales representative for a manufacturing equipment company, has decided to spend ...
Post by: StormLrd on Nov 7, 2017
John Hatelak, a sales representative for a manufacturing equipment company, has decided to spend less time traveling. He is going to spend only 172 hours per month with his customers. To do this he will have to give up some of his clients. The following information is from his last full month's sales activities.

   Large   Medium   Small
   Customers   Customers   Customers
Number of customers   20   100   160
Average sale per customer   $6,000   $2,000   $1,200
Commission (% of sales $)   10%   7%   5%
Average time per customer   6 hours   4 hours   3 hours

Required:
a.   What should be his customer mix in order to maximize his sales commissions?
b.   What will be his income at the best possible customer mix?


Title: Re: John Hatelak, a sales representative for a manufacturing equipment company, has decided to spend ...
Post by: pacho on Nov 7, 2017
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