E4-26 ---- For E4-26, here is an important hint. Because your constraint, your limited resource, is hours, you want to find the contribution margin per hour for each product. That will enable you to answer the various parts of the question.

Limited Resources

Maria Pajet, a regional sales representative for UniTec Systems Inc. has been working about 80 hours per week calling on a total of 123 regular customers each month. Because of family and health considerations, she has decided to reduce her hours to a maximum of 160 per month. Unfortunately, this cutback will require Maria to turn away some of her regular customers or, at least, serve them less frequently than once a month. Maria has developed the following information to assist her in determining how to best allocate time. (THE CHART IS ATTACHED TO THIS QUESTION)

Required

a.Develop a monthly plan that indicates the number of customers Maria should call on in each classification to maximize her monthly sales commissions.

b.Determine the monthly commissions Maria will earn if she implements this plan.

c.Give one or two reasons why Maria might decide not to follow the conclusions of the above analysis entirely.

lid215. Limited Resources Maria Pajet, a regional sales representative for Uni'Iec Systems Inc. has been working about ED hours per week calling on a total of 123 regular customers each month. Because of family and health consider- ations, she has decided to reduce her hours to a maximum of 160 per month. Unfortunately, itlis cutback will require Maria to turn away some of her regular customers or, at least, serve them less frequently than once a month. Maria has developed the following information to assist her in deterrmning how to best allocate time: lI'.:ust:irner Classication Business Individual Number of customers ...................... B 35 SD Average r'r'uoorthllyr sales per customer .......... $2.5m $1 sea We Commission percentage ................... 5% see 10% Hours per customer per monily visit ......... so so 2.5 Required 0. Develop a monthly plan that indicates the number of customers Maria should call on in each clas sification to maximize her monthly sales conunissions. b. Determine the monthly commissions Maria wl earn if she implements this plan. :3. Give one or two reasons why Maria might decide not to follow the conclusions of the above analysis entirely