Question: Based on the initial spreadsheet (see below), which approach seems to be the most sensible for Hydropump? Why? SPREADSHEET FOR CALCULATIONS Intensive Distribution Selective Distribution

Based on the initial spreadsheet (see below), which approach seems to be the most sensible for Hydropump? Why?

SPREADSHEET FOR CALCULATIONS

Intensive Distribution

Selective Distribution

Number of Retailers

5600

280

Retailers per Sales Rep

300

70

Sales Reps Needed

19

4

Salary per Sales Rep

18000.00

18000 00

Personal Selling Expense

342000,00

72000.00

Mass-selling Expense

200000.00

50000.00

Overhead Cost

120000.00

80000.00

Cost to Produce a Pump

35.00

35.00

Total Pumps Sold by Dealers

175000

26000

Hydropump's Percent of Dealers' Units

14.00

40.00

Total Expected Units

24500

10400

Price to Retailers

70.00

75.00

Hydropump Total Revenue

1715000.00

780000.00

Hydropump Total Cost

1519500.00

566000.00

Hydropump Profit

195500.00

214000.00

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