CrestLight

Group- 5

Expense Ratios Exhibit 5&6

Sales Expense Ratio = E/S Position

Halbert 43.43(258000/5940) 1Jennings 28.35 2Bindon 19.74 3

Vereker 19.24 4

Prince 14.44 5

Anderson 13.92 6

Randall 12.81 7

Thompson 10.38 8

Campbell 9.77 9

Expense RatiosCost per call Ratio=TC/No of Calls

Position

Thompson 32.97 ( 1Jennings 28.75 2Halbert 28.41 3

Prince 27.61 4

Anderson 27.49 5

Bindon 24.61 6

Randall 22.24 7

Campbell 19.8 8

Vereker 18.04 9

Account development and servicing ratio

Account Penetration Ratio = Account Sold/Total Accounts

Position

Halbert 0.86 1

Jennings 0.73 2

Bindon 0.6 3

Vereker 0.57 4

Prince 0.54 5

Anderson 0.51 6

Randall 0.48 7

Thompson 0.42 8

Campbell 0.38 9

Account development and servicing ratio

Sales per Account ratio= Sales Dollar Volume/Total number of accounts

Position

Thompson 1079.5 1

Campbell 702.97 2

Randall 469.55 3

Bindon 451.1 4

Jennings 372.88 5

Halbert 337.91 6

Anderson 327.73 7

Prince 317.28 8

Vereker 281.41 9

Call Productivity & TerritoryTerritory Area(sq.km) Position

Prince 78800 1

Campbell 44600 2

Bindon 28200 3

Thompson 25600 4

Halbert 15400 5

Anderson 15400 6

Randall 13000 7

Vereker 7300 8

Jennings 1600 9

Call ActivityCalls per account ratio Position

Halbert 5.8 1

Jennings 5.15 2

Bindon 3.99 3

Vereker 3.64 4

Prince 3.58 5

Anderson 3.35 6

Randall 2.9 7

Thompson 2.29 8

Campbell 2.21 9

Limitations of Ratios

• �Sales Expense Ratio -• Expenses depend on many factors like area, number of accounts, travelling

required, etc.• Cost per call Ratio • Remuneration are included in costs, so higher remunerations lead to

higher ratio• Account Penetration Ratio • Affected by presence of competitors, buying habits of students in the area etc• Sales per account Ratio• Number of students in each account affect this ratio• Call conversion Ratio-• Depends on the number of new accounts as new ones may require more calls

than old ones as they need more convincing

Consolidated

Sales Expense

Cost per call Ratio

Account Penetration Ratio

Sales per Account ratio

Territory Area(sq.km)

Call Activity

TotalHalbert 1 3 1 6 5 1 17Jennings 2 2 2 5 9 2 22Bindon 3 6 3 4 3 3 22Prince 5 4 5 8 1 5 28Thompson 8 1 8 1 4 8 30Anderson 6 5 6 7 6 6 36Vereker 4 9 4 9 8 4 38Randall 7 7 7 3 7 7 38Campbell 9 8 9 2 2 9 39

Result of Qualitative Analysis

• Vereker Randall and Campbell are performing badly.

• Halbert, Jenning, Bindon are good performers.

Subjective analysis of salespersons

• Sales Results• Job Knowledge• Management of territory• Customer & Company Relations• Personal characteristics

Suggestions

• Replace Vereker• Reallocation of Sales territory• Variable Pay. • Allocate Account Managers.