Maria Pajet, a regional sales representative for UniTec Systems, Inc., has been working about 60 hours per week calling on a total of 85 regular customers each month. Because of family and health considerations, she has decided to reduce her hours to a maximum of 160 per month. Unfortunately, this cutback will require Maria to turn away some of her regular customers or, at least, serve them less frequently than once a month. Maria has developed the following information to assist her in determining how to best allocate time:. Large BusinessSmall BusinessIndividual
Number of Customers83580
Average monthly sales per customer$2,500$1,500$600
Commission percentage5%8%10%
Hours per customer per month visit5.03.02.5
Required:
A- Develop a montly plan that indcates the number of customers Maria should call on in each classification to maximize her montly sales commissions.
B- Determine the monthly commissions Maria will earn if she implements this plan.
C- Give one or two reasons why Maria might decide not to follow the conclusions of the above analysis entirely?