Answer:
624 Salespeople
Explanation:
Total call hours in month to florist = 10,000 florist X 4 times in a month X 1 hour each call = 40,000 hours per month
Total call hours in month to supermarkets = 3,000 supermarkets X 2 times a month X 2 hours each call = 12,000 hours per month
Total of both per month = 40,000 + 12,000 = 52,000 hours per month
Total annual hours = 52,000 X 12 = 624,000 hours
An average salesperson spends 1,000 hours per year making sales calls.
Therefore number of sales person required to meet annual target = 624,000/1,000 = 624 Salespeople
624 Salespeople
The number of salespeople that Diamond Line needs to cover its account base for a year is 624 salespersons.
Data and Calculations:
Florists Supermarkets
Customer base 10,000 3,000
Number of calls/per month 4 2
Number of calls per year 48 (4 x 12) 24 (2 x 12)
Number of hours per sales call 1 2
Total hours per year 48 (48 x 1) 48 (24 x 2)
Total hours spent on customers 480,000 144,000
(48 x 10,000) (3,000 x 48)
Total hours spent on all customers = 624,000 hours (480,000 + 144,000)
Average hour spent by a salesperson per year = 1,000
Number of salespersons needed per year = 624 (624,000/1,000)
Thus, Diamond Line needs 624 salespersons to cover its account base per year.
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