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 $0......

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