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StormLrd StormLrd
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7 years ago
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?
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
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pachopacho
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7 years ago
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-Michigan State University

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StormLrd Author
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7 years ago
Brilliant ツ
courtneyrmcd
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Yesterday
Helped a lot
choih94
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2 hours ago
Thanks
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