With the population aging and increasing numbers of older patients who dread sitting in a sterile dental office, dentists are finding an opportunity in dental house calls. The Blende Dental Group has taken its service on the road in San Francisco and New York City, performing everything from routine exams and cleanings to root canals. Recreating a dental office in a home requires additional, expensive equipment, such as a portable X-ray machine that looks like a ray gun, sterile water tanks, a dental drill, lights, and a laptop in addition to a vehicle. A portable X-ray machine alone costs $4,000. Refer to Increase Distribution Coverage in Appendix 2: Marketing by the Numbers to answer the following questions.

Data from apendix 

Wise Domotics also wants to consider hiring more salespeople in order to call on new retailer accounts and increase distribution through more outlets. Even though Wise Domotics  sells directly to wholesalers, its sales representatives call on retail accounts to perform  other functions in addition to selling, such as training retail salespeople. Currently, Wise  Domotics employs 60 sales reps who earn an average of $100,000 in salary plus 10 percent  commission on sales. The product is currently sold to consumers through 1,800 retail outlets.  Suppose Wise Domotics wants to increase that number of outlets to 2,300, an increase  of 500 retail outlets. How many additional salespeople will Wise Domotics need, and what  sales will be necessary to break even on the increased cost?

where
       NS = number of salespeople
       NC = number of customers
       FC =average frequency of customer calls per customer
       LC=average length of customer call
       TA= time an average salesperson has available for selling per year

What other factors must dentists consider before offering this service in addition to their in-office service?

Transcribed Image Text:

NS NC x FC x LC ΤΑ