Solve the following problems showing your work. Problem 1 The sales manager at H

Question

Solve the following problems showing your work.

Problem 1

The sales manager at Heatum-Coolum HVAC systems is analyzing the effectiveness of all sales reps. The newest rep, Thuan, had $110,000 in sales, out of a potential$780,000. He has 14 active accounts, 27 potential accounts, and has had 220 client calls and contacts during the sales period. His expenses were $16,000 for the same time period.

QUESTION 1: What was Thuan's sales/contacts ratio? (Answer: $500)

QUESTION 2: What was Thuan's sales/potential accounts ratio?

QUESTION 3: What was Thuan's sales/active accounts ratio? (Answer: $7,857)

QUESTION 4: What was Thuan's sales/potential sales ratio?

QUESTION 5: What was Thuan's expenses/sales ratio? (Answer: 14.5%)

Explanation / Answer

1) Thuan's sales/contacts ratio = Sales /No of client calls = 110000/220 = $500

2) Thuan's sales/potential accounts ratio = sales/Potential accounts = 110000/27 = 4074

3)Thuan's sales/active accounts ratio = Sales/ Active accounts = 110000/14 = 7857

4) Thuan's sales/potential sales ratio = (sales/potential sales )*100 = (110000/ 780000)*100 = 14.1%

5) Thuan's expenses/sales ratio = (expenses/sales)*100 = (16000/110000)*100 = 14.5%

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