"Show your intermediate computations for each problem. I need to know how you arrived at your answer"

1. A firm wishes to determine the number of sales representatives needed for outside sales. The company has 1,000 customers that are expected to be visited 4 times per year by a company rep with each visit requiring about 2 hours of time for preparation, travel, and face-to-face selling time. The number of hours available per sales representative per year is 1600 allowing for report-making, training of other salespeople, and other down time. How many sales representatives does the firm need?

2. ADT Security wishes to estimate the customer lifetime value for a customer segment that produces an annual cash margin per customer of $162 using a discount rate of 10% and a projected retention rate of 65%. Calculate the customer lifetime value (CLV) for this type of ADT client.

3, A company is debating whether to outsource its salesforce from the current in-house structure. The current cost of the salesforce is a commission of 5% of sales plus base salaries and administrative costs of $500,000 for the year. The alternative is a commission of 7.5% of sales with no base salary or administrative cost. Find the level of sales at which the two structures are equal.