I Have No Clue

Appendix 1

Sales Force Productivity

Current Calls Per Account

Number of Salespeople: 10

Number of Calls per Week: 10

Number of Weeks: 50

Total Number of Calls per Year: 5,000

Number of Accounts: 1,000

Number of Calls per Account: 5

Desired Calls Per Account: 7

Percent Increase: 7 Ð'- 5/5 = 40%

Appendix 2

Financials Associated With Different Selling Alternatives

Assume Lea-Meadow Sales of $5,000,000

Sales Agents Company Sales Force

Fixed Costs $0 $235,0001

Variable Costs $5,000,000 X .05 = $250,000 $5,000,000 X .005 = $25,000

Total Costs $250,000 $260,000

1Assumes selling Lea-Meadows line = 15% of call time multiplied by 10 sales people = 1.5 sales people to sell the line. Also assumes $70,000 per sales person plus $130,000 in sales administration costs.

Assume Lea-Meadow Sales of $5,350,000Ð'--a 7% increase1

Sales Agents Company Sales Force

Fixed Costs $0 $235,0002

Variable Costs $5,350,000 X .05 = $267,000 $5,350,000 X .005 = $26,750

Total Costs $267,000 $261,750

1Assumes number of Carrington Salespeople remains constant

2Assumes selling Lea-Meadows line = 15% of call time multiplied by 10 sales people = 1.5 sales people to sell the line. Also assumes $70,000 per sales person plus $130,000 in sales administration costs.

General Relationship

Lea-Meadows

Costs

Carrington

$5,000,000 Sales

Appendix 3

Carrington Sales Emphasis

Current Travel Time for Carrington Sales Force

Calls per Week: 10

Hours per Call: 3

Total Hours Calling: 30

Hours per Week: 40

Travel Time: 10

Hours per Call