Appendix 1
Sales Force Productivity
Current Calls Per Account
Number of Salespeople: 10
Number of Calls per Week: 10
Number of Weeks: 50
Total Number of Calls per Year: 5,000
Number of Accounts: 1,000
Number of Calls per Account: 5
Desired Calls Per Account: 7
Percent Increase: 7 – 5/5 = 40%
Appendix 2
Financials Associated With Different Selling Alternatives
Assume Lea-Meadow Sales of $5,000,000
Sales Agents Company Sales Force
Fixed Costs $0 $235,0001
Variable Costs $5,000,000 X .05 = $250,000 $5,000,000 X .005 = $25,000
Total Costs $250,000 $260,000
1Assumes 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.
Assume Lea-Meadow Sales of $5,350,000—a 7% increase1
Sales Agents Company Sales Force
Fixed Costs......
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