Solve the following problems showing your work. Problem 2 Vicky is one of 25 sal

Question

Solve the following problems showing your work.

Problem 2

Vicky is one of 25 sales reps for Student Painters Inc., a local house painting service in Uburbia. Vicky's territory has a sales potential of $4,900,000, which is 5.0% of total company sales potential. Last year, Vicky sold $133,000 worth of services, corresponding to 2% of actual company sales. Student Painters wants to increase sales ($) by 13% this year.

What would be Vicky's sales goal this year, using the historical plus increase allocation method? (Answer: $176,225)

Explanation / Answer

5% of sales potential is 4900000

Therefore historic + 13% increase means 18% target

5%------------4900000

18%-----------?

= (4900000*18*4)/5

=352800000 Target

Now current year target will be 352800000*5%=17640000 for the territory

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