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Posted by on Wednesday, September 5, 2012 at 12:36pm.

The Recall Computer Company has six territories, each represented by one salesperson. After extensive planning, the company determines that each territory would be expected to achieve the following percentages of total company sales for 2008:

Territory 1=27% Territory 4=12%
Territory 2=15% Territory 5=20%
Territory 3=18% Territory 6=8%

These figures are used as the standard for comparing each sales representative’s actual 2008 sales. The company projected sales for 2008 of $18,500,000. Determine which sales representative’s territory had the best performance by using the performance index, if the actual sales for 2008 are annotated below
Territory 1 5,425,000
Territory 2 3,505,000
Territory 3 3,710,000
Territory 4 2,400,000
Territory 5 3,900,000
Territory 6 2,000,000
Total 20,940,000 18,500,000

What is the expected sales and performance index for each territory?

  • math unclear - , Wednesday, September 5, 2012 at 12:43pm

    You go through a long explanation, and then ask that we rate the territories using a performance index. Nowhere is that index defined.

    How do we rate a territory's performance? a percentage of the goal achieved, the difference between sales and goal, or what?

    Maybe by clarifying just what is wanted, you can figure out the answers yourself. If not, come on back and say where you need help.

  • math - , Wednesday, September 5, 2012 at 12:44pm

    Help me now wait i get it...thanks

  • math - , Wednesday, September 5, 2012 at 12:47pm

    As long as you're at it, you don't say whether the projected sales are used, or the actual sales. If the actual sales are greater than the projection, does the performance get calculated using the actual sales, or the projected sales?

    If actual sales are low, but each territory achieves their percentage goal, their performances might appear satisfactory, even though sales fell short of the projection. So, is performance poor, is the projection faulty?

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