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Also assumes $70,000 per sales person plus $130,000 in sales administration costs.
Assume Lea-Meadow Sales of $5,350,000?a 7% increase1
Sales Agents Company Sales Force
Fixed Costs $0 $235,0002
Variable Costs $5,350,000 X .05 = $267,000 $5,350,000 X .005 = $26,750
Total Costs $267,000 $261,750
1Assumes number of Carrington Salespeople remains constant
2Assumes selling Lea-Meadows line = 15% of call time multiplied by 10 sales people = 1.5 sales people to sell the line. Also assumes $70,000 per sales person plus $130,000 in sales administration costs.
General Relationship
Lea-Meadows
Costs
Carrington
$5,000,000 Sales
Appendix 3
Carrington Sales Emphasis
Current Travel Time for Carrington Sales Force
Calls per Week: 10
Hours per Call: 3
Total Hours Calling: 30
Hours per Week: 40
Travel Time: 10
Hours per Call Given Desired Calls per Account for Carrington Sales Force
Calls per Week: 14
Total Hours Calling: 30
Hours per Call: 2...
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