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AutoSave File Home Calibri Paste Clipboard Page 2 of 6 1594 words ENT3360 Exam3.doc - Compatibility Mode - Word Insert Draw 11.5 Font Design Layout Search View Help RCM References Mailings Review Paragraph AaBbCc] Strong Dunfield, Dalton Find v Sc Replace Dictate Select v Editing Voice g Share AaBbCcL Emphasis AaBbC AaBbCc1 Heading 1 11 Normal Styles Sensitivity Sensitivity Editor Editor P Comments Reuse Reuse Files B. A few months go by and the Team successfully developed the software product! Their product requires B2B sales, meaning that they sell their product to colleges and universities around the country, rather than directly to consumers. To do so, the Team decided to hire four sales representatives for four different regions around the country: North, South, West, and East. Each representative will start on January ISt of Year 1 and get paid a base salary of $50,000 per year and 20% of the revenue that they generate. The pricing for the product will be as the following: $50,000 per college for product set up and installation (one-time fee) $20,000 per college for maintenance and upgrades (yearly starting from Year 2) $10/license fee per student per year (starting from year 1) For instance, if a college has 5,000 students, the college will pay a one-time $50,000 fee to install the software system, $20,000 per year on maintenance and upgrades starting from Year 2, and $50,000 (=$10 x 5,000) licensing fees per year, starting I Year 1. That is, the college will pay $100,000 for the first year and $70,000 for Year 2 and beyond, assuming that the number of licenses is kept at 5,000 and if we assume that the sale occurred in the beginning of Year 1. The sales rep who brought in the account will get paid $20,000 for the account in Year 1 (i.e., 20% of $100,000) and $14,000 for Year 2 and beyond (20% of $70,000). 3. Using the following assumptions, construct revenue schedule for the next three years. (1.5 point) Average size of college: 5,000 students The four representatives will bring a total of 10 accounts in Year 1 Each representative will bring in 5 new accounts per year for Years 2 and respectively. There will be no turnover of clients 3:58 PM 5/5/2021