Given:
Company wishes to make $8,000,000 per year in sales.
Revenue categorization:
Product sales = 45%
Annual maintenance = 35%
Training = 20%
Number of salesmen = 10
To find: average product sales per month that each salesman must sell.
Solution:
Revenue in sales = $8,000,000 per year
From product sales = 45%
So, $8,000,000*45% = $3,600,000
$3,600,000 per year is revenue from product sales.
So, per month revenue from product sales = $3,600,000/12 = $300,000
Now, there are 10 salesmen, so in order to find average product sales per
month that is to be done by each salesman should be calculated as below:
$300,000/10 = $30,000
$30,000 is the average product sales per month that is to be done by each salesman.
