Sales Quotas. A sales quota establishes a minimum amount of sales expected during a given period for a salesperson in some businesses, such as selling cars or houses. In setting sales quotas, sales managers take certain factors into consideration, such as the nature of the sales representative’s territory and the experience of the salesperson. Such sales quotas enable a company to forecast the sales and future growth of the company for budget and profit purposes.
Try the following quota problem:
A sales representative for a time-sharing company has a monthly sales quota of 500 units. The representative sold 120 units during the first week, 135 units during the second week, and 165 units during the third week of the month. How many units must be sold before the end of the month if the salesperson is to meet the quota?
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