Information about five sales reps and their territories is presented below.If the firm has total sales of $1 million,which sales rep has the highest performance index? $$\begin{array} { | l | l | l | }
\hline \text { Rep name } & \begin{array} { l }
\text { Territory potential as a percent } \
\text { of total }
\end{array} & \text { Actual sales } \
\hline \text { Aayak } & 30 \% & \$ 290,000 \
\hline \text { Bellio } & 30 \% & \$ 210,000 \
\hline \text { Cadams } & 10 \% & \$ 120,000 \
\hline \text { Dooty } & 10 \% & \$ 150,000 \
\hline \text { Eayma } & 20 \% & \$ 230,000 \
\hline
\end{array}$$
A) Aayak
B) Bellio
C) Cadams
D) Dooty
E) Eayma

Question

Information about five sales reps and their territories is presented below.If the firm has total sales of $1 million,which sales rep has the highest performance index? $$\begin{array} { | l | l | l | } 
\hline \text { Rep name } & \begin{array} { l } 
\text { Territory potential as a percent } \
\text { of total }
\end{array} & \text { Actual sales } \
\hline \text { Aayak } & 30 \% & \$ 290,000 \
\hline \text { Bellio } & 30 \% & \$ 210,000 \
\hline \text { Cadams } & 10 \% & \$ 120,000 \
\hline \text { Dooty } & 10 \% & \$ 150,000 \
\hline \text { Eayma } & 20 \% & \$ 230,000 \
\hline
\end{array}$$
A) Aayak
B) Bellio
C) Cadams
D) Dooty
E) Eayma

Quizplus · Accepted Answer

From the given data, performance index can be calculated as: Actual Sales/Expected Distribution of Sales Based on Population × 100. The total actual sales is $1,000,000. Dooty is expected to sell 10% or $100,000. Dooty actually sells $150,000. Dooty's performance index is calculated by taking his actual sales ($150,000) and dividing it by expected sales (10% of $1,000,000 = $100,000) - and then multiplying this by 100. The equation = ($150,000/100,000) × 100 = 150. If you calculate the other sales reps' performance index, you will find each is lower.

Information About Five Sales Reps and Their Territories Is Presented