What will be robin contribution to the firm

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Reference no: EM132298286

System Avengers Inc. (SAI) manufactures and sells products to business and industrial customers for $7,500 each. Sales person Robin is one of 50 company salespeople who are compensated by commission earnings only. All earn commissions of 20% on all sales revenues generated and additional 5% commission on all unit sales above 30 per year (on number 31 and on). The variable expense per sale is $2,000 excluding sales commissions. Salespeople are provided lead (potential customer) by the firm's marketing department. Robin's historical "close rate" on leads has be 16% or one out of every 6.25 leads provided. SAI's VP of Sales plans to hire inside salespeople to improved sales force productivity. Robin's close rate is projected to rise to 20%. One third of inside salesperson's total cost of $75,000 is to be allocated to Robin's account. After this change, what will be Robin's contribution to the firm?

Reference no: EM132298286

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