Question: Q10. Westgate in the problem 9 , has decided to hire service representatives to implement a proactive service call strategy to address service issues using

Q10. Westgate in the problem 9 , has decided to hire service representatives to implement a proactive service call strategy to address service issues using the following approach. Customers were divided into 4 groups based on their contribution to the company's profit. Large customers who accounted for 40% of the profit were grouped as Class A customers. Given the importance of these customers, service representatives call on Class A customers 20 times a year. These service representatives meet with multiple groups within the firm and spend about 1.5 hours for each call. The next group of large customers were grouped as Class B customers and were visited once every month with each call lasting about 45 minutes. The next two groups accounted for 35% of the profits. Service reps make a regular call every 2 months to Class C customers and spendabout 20 minutes each. Class D customers are visited once every three months for 20 minutes call. Table 1 below provides you the call frequency for customer groups. At Westgate, employees work 40 hours per week and have 4 weeks of vacation time per year. Workload research shows that sales and service employees spend about 23.7% of their time in traveling, 16.3% in report writing and administrative tasks, 15% of the time in in departmental meetings, and the remaining 45% in face-to-face service calls. a. Determine the number of service representatives Westgate needs to hire using the workload approach. b. Service representatives are paid a salary of $65,000 per year. Firms incur an additional 40% of the salary in benefits. Determine the new break-even sales in units and $
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