Calculate eight relevant measures

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Reference no: EM13558089

A company sells a large number of products that are accessories for a certain class of machine. For the United Kingdom it has nine salesmen, each of whom is responsible for sales in a separate territory.

Estimates of total market potential are $6.0 million and $7.1 million for 20X1 and 20X2 respectively. Data for two individual salesmen and for the company as a whole is shown in the box below.

Required

a) For the average of all nine salesmen and for each of salesmen Abbott and Bartram for 20X2 do the following.

i)  Calculate the following.

1) Sales potential

2) Sales penetration percentages

3) Sales potential per account

 ii) Calculate eight relevant measures that would help assess the performance of each salesman. These measures should be developed from the data given under the following five headings.

1) Customers

2)  Gross margin

3) Calls made

4) Remuneration

5) Expenses

At least one measure should be calculated for each heading.     

(b) Assess the performance of Bartram for 20X2 based on a combination of the data in (a) above plus any other data that you consider relevant.                        

 

 

 

Territory area ('000 sq km)

Territory 1

7.30

Territory 2

15.40

Total UK

(including

territories 1 and 2)

230.90

Number of machines in territory (millions)

1.65

0.83

12.80

Potential number of accounts

Salesmen

699

Abbott

423

Bartram

5,965

20X1:

 

 

 

Sales ($'000)

97

101

1,211

Customers (number of accounts)

412

323

3,318

Gross margin ($'000)

34

39

426

Calls made

1,410

1,163

10,901

20X2

 

 

 

Sales ($'000)

112

123

1,460

Customers (number of accounts)

398

364

3,271

Gross margin

39

47

498

Calls made

1,450

1,220

11,030

Salary ($)

7,100

6,000

60,800

Commission ($)

1,680

1,845

21,585

Total remuneration ($)

8,780

7,845

82,385

Expenses ($)

1,940

3,200

28,060

Reference no: EM13558089

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