Reference no: EM131330312
Using the following information, calculate the total salesforce size necessary by using each of the following approaches: breakdown, workload, and incremental. Be sure to show your work. Also, explain the advantages and disadvantages of each approach. Which approach would you recommend using to determine salesforce size? Why?
- Sales of $80 million are forecast for next year.
- Fifteen thousand calls are needed in the market area to be covered.
- Salespeople generate an average of $2 million in annual sales.
- A salesperson can make an average of 500 annual sales calls.
- Marginal salesperson cost is $65,000. With 88 salespeople, the marginal salesperson profit contribution is $75,000. This profit contribution decreases by $5,000 with each additional salesperson added to the base of 88 salespeople. Marginal salesperson cost remains constant.
- Turnover is 10 percent annually.
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