Marion sells for the Whatisits Company of Whoville.An analysis of the performance of the company's 25 person sales force shows that the average sales rep works 250 days a year,makes four calls a day,obtains an order,averaging $15,000,every ten calls made.Marion worked 200 days last year during which she made a total of 700 calls which resulted in 50 orders totaling $1,500,000 in sales volume.If Marion worked 250 days in 1991 with the same effectiveness as she did in 1990 what would her sales volume be approximately?
A)$1,500,000.
B)$1,750,000.
C)$1,875,000.
D)$2,000,000.
E)$2,500,000.

Question

Quizplus · Accepted Answer

First, let's find Marion's success rate in obtaining orders:
Out of 700 calls, she obtained 50 orders. This means she obtains an order for every 14 calls made (700/50 = 14).

Using the information given in the problem, we can calculate Marion's expected sales volume per day:
- She makes 4 calls per day
- She obtains an order every 10 calls
- Therefore, she obtains an order every 2.5 days (10 calls / 4 calls per day)
- Each order is worth $15,000

So Marion's expected sales volume per day is $15,000 / 2.5 = $6,000.

If she worked 250 days in 1991 with the same effectiveness as she did in 1990, her expected total sales volume would be:
$6,000 per day x 250 days = $1,500,000.

Therefore, the best choice is (C) $1,875,000, which is the closest answer choice to $1,500,000.

Marion Sells for the Whatisits Company of Whoville