Financial Planning. Managers at Industrial Supply, Inc. are planning a sales campaign for the coming year in

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Financial Planning. Managers at Industrial Supply, Inc. are planning a sales campaign for the coming year in which they must determine how many sales representatives they will assign to seven product lines. S-shaped sales response functions of the form

have been fitted to subjective data provided by a group of experienced managers. (Both variables Sales and Reps have been measured relative to base levels. Thus %Reps represents the ratio between proposed reps and base reps, while %Sales represents the ratio between proposed sales and base sales.) The fitted values for the four parameters for each product are given in the table below.

The table below gives the current number of reps assigned to each product and current sales, along with the contribution margin on each product. The cost of each rep is $63,000 per year.


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