Maria Pajet, a regional sales representative for UniTec systems Inc has been working about 80 hours per week calling on a total of 123 regular customers each month. Because of family and health considerations, she has decided to reduce her hours to a maximum of 160 hours per month. Unfortunately, this cutback will require Maria to turn away some of her regular customers or, at least, serve them less frequently than once a month. Maria has developed the following information to assist her in determining how to best allocate time: Large Business Small Business Individual
Number of Customers 8 35 80
Average monthly sales per customer $2,500 $1,500 $600
Commission percentage 5% 8% 10%
Hours per customer per month visit 5.0 3.0 2.5
Required:
A - Develop a montly plan that indcates the number of customers Maria should call on in each classification to maximize her montly sales commissions.
B - Determine the monthly commissions Maria will earn if she implements this plan.
C - Give one or two reasons why Maria might decide not to follow the conclusions of the above analysis entirely?