# Hives Problem

Shared by:
Categories
-
Stats
views:
1
posted:
8/25/2010
language:
English
pages:
5
Document Sample

```							                Hives Co

Account Product 1 Product 2 Last year
1       200       340             8
2       310       200             7
3       720       320            13
4       850       280            14
5       900       140            12
6       435       820            19
7       420       200             8
8       630       210            10
9       711       190            11
10       560       295            11
11       510       150             8
12       480       920            21
13       770       450            16
14       104       500            10
15       220       200             6
16       760       435            15
17       621       330            12
18       210       635            13
19       190       210             6
20       500       320            10
Totals   10101      7145           230

Above is Hive Co.'s data for the top 20 accounts in your territory last year.
600 calls are scheduled yearly with the top 20 accounts having 250 calls.
Due to appointments being cancelled, 230 calls were made on the top 20 accounts.
You can call a maximum of once every two weeks on any account.
Average cost per call =\$495. Product 1 has a price of \$220 and unit costs
excluding direct selling costs of \$95. Product 2 has a price of \$380 and unit costs
excluding direct selling costs of \$185.
a. Which are 5 best accounts for net contribution?
b. What is the total net contribution for the top 20 accounts?
c. Give your planned call allocation next year for the 20 accounts.
Hives Co.
Current Situation

Account Product 1 Product 2       Last year     Revenues  Total Costs   Contribution
1       200        340                   8      173200       85860         87340
2       310        200                   7      144200       69915         74285
3       720        320                 13       280000     134035        145965
4       850        280                 14       293400     139480        153920
5       900        140                 12       251200     117340        133860
6       435        820                 19       407300     202430        204870
7       420        200                   8      168400       80860         87540
8       630        210                 10       218400     103650        114750
9       711        190                 11       228620     108140        120480
10       560        295                 11       235300     113220        122080
11       510        150                   8      169200       80160         89040
12       480        920                 21       455200     226195        229005
13       770        450                 16       340400     164320        176080
14       104        500                 10       212880     107330        105550
15       220        200                   6      124400       60870         63530
16       760        435                 15       332500     160100        172400
17       621        330                 12       262020     125985        136035
18       210        635                 13       287500     143860        143640
19       190        210                   6      121600       59870         61730
20       500        320                 10       231600     111650        119950
Totals   10101       7145                230      4937320    2395270       2542050

Total Net Contribution           2542050.00
Avg. Cont. Per Call    11025.176
Contribution
Per Call
10917.50
10612.14
11228.08
10994.29
11155.00
10782.63
10942.50
11475.00
10952.73
11098.18
11130.00
10905.00
11005.00
10555.00
10588.33
11493.33
11336.25
11049.23
10288.33
11995.00
Hives Co
New Call Plan

Units Sold     Planned                            Net                    Contribution
Account Product 1 Product 2 Calls    Revenues  Total Costs Contribution               Per Call
1       200       340          9     173200       86355        86845                9649.44
2       310       200          8     144200       70410        73790                9223.75
3       720       320         14     280000      134530      145470                10390.71
4       850       280         15     293400      139975      153425                10228.33
5       900       140         13     251200      117835      133365                10258.85
6       435       820         20     407300      202925      204375                10218.75
7       420       200          9     168400       81355        87045                9671.67
8       630       210         11     218400      104145      114255                10386.82
9       711       190         12     228620      108635      119985                 9998.75
10       560       295         12     235300      113715      121585                10132.08
11       510       150          9     169200       80655        88545                9838.33
12       480       920         22     455200      226690      228510                10386.82
13       770       450         17     340400      164815      175585                10328.53
14       104       500         11     212880      107825      105055                 9550.45
15       220       200          6     124400       60870        63530               10588.33
16       760       435         17     332500      161090      171410                10082.94
17       621       330         13     262020      126480      135540                10426.15
18       210       635         14     287500      144355      143145                10224.64
19       190       210          6     121600       59870        61730               10288.33
20       500       320         12     231600      112640      118960                 9913.33
Totals   10101      7145     250    4937320.00 2405170.00 2532150.00

Total Net Contribution                   2532150.00
Avg. Cont per call                        10089.35

None of the accounts have > 26 calls. The spread between the high and low is #15 at
\$10588 and the low of #2 of 9223.75 for contribution per call. Both are within \$800 of the
average. If you adjust acounts 2, 15 or1 you will get a big jump in the contribution per
call. All 250 calls are allocated.
ribution

```
Related docs