1. Assume that you are a sales manager of Thai-Thai Company and responsible for distributing Thai traditional massage oil to all wholesalers in Thailand. If each salesperson in your sales force will make 1 call on a particular customer every 2 months, and the cost of making one face-to-face call is 3,220 baht, what is the break-even sale volume to cover the direct selling expenses per year? Show the formula.

2. Thai-Thai Company plans to expand its market by selling its massage oil to traditional massage and spas operated by well-known hotels (estimated total of 667 accounts). If each salesperson needs to make a total of 4 calls to close the sales, and the cost per call is the same, calculate the total break-even sales volume generated from all prospective accounts. Show the formula.

3. Thai-Thai Company uses salary plus progressive commission as a compensation plan. Calculate the total commission earned by your sales persons by using the following commission rates.

SALES (BHAT) COMISSION (%)

0 TO 30,000 2

30,001 TO 50,000 3

Any amount over 55,000 4

1. 3.1 Jessy = 28,650 baht
2. 3.2 Nichie = 29,125 baht
3. 3.3 Tom = 31,880 baht
4. 3.4 Nick = 51,240 baht
5.  

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Industry Banking Business services Chemicals Communications Construction Electronic components Electronics Fabricated metals Food products Instruments Machinery Manufacturing Office equipment Paper/allied products Pharmaceuticals Printing/publishing Rubber/plastics Wholesale (consumer) Sales Force Costs as A Percentage of Sales 0.9% 10.5 3.4 9.9 7.1 4.9 12.6 7.2 2.7 14.8 11.3 6.6 2.4 8.2 5.6 22.2 3.6 11.2 Table 1: Sales Force Costs across Selected Industries Industry Banking Business services Chemicals Communications Construction Electronic components Electronics Fabricated metals Food products Instruments Machinery Manufacturing Office equipment Paper/allied products Pharmaceuticals Printing/publishing Rubber/plastics Wholesale (consumer) Sales Force Costs as A Percentage of Sales 0.9% 10.5 3.4 9.9 7.1 4.9 12.6 7.2 2.7 14.8 11.3 6.6 2.4 8.2 5.6 22.2 3.6 11.2 Table 1: Sales Force Costs across Selected Industries

Answer rating: 100% (QA)

To calculate the breakeven sales volume to cover the direct selling expenses per year we need to det... View the full answer