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Hives Co
Units Sold Calls Made
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
Units Sold Calls Made Net
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
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