2 Tyler Automotive, Inc. supplies 1,000 independent auto parts stores in the U.S. Each store is called on 12 times a year, and the average sales call lasts 30 minutes. Assuming a salesperson works 40-hours a week, 50 weeks a year, and devotes 75% of the time to actual selling--how many salespeople does Tyler Automotive need? (show your calculations).

Relevance

Actual selling time is 6,000 hours per year.

Each person works 2,000 hours per year and spends 0.75(2,000) = 1500 hours per year selling.

Simply dividing 6000/1500 = 4 salespeople.

This calculation doesn't take travel time into account. In the real world, more salespeople will be needed.

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• First find the total time of sales calls per year for all the stores:

(1000 stores)(12 calls/store)(30 minutes/call) = 360,000 minutes = 6,000 hours

Next find the total time each salesperson sells per year:

(50 weeks)(40 hours/week)*0.75 = 1,500 hours/salesperson

Finally, find the number of salespeople needed:

(6000 hours) / (1500 hours/salesperson) = 4 salespeople

• 1000 stores X 12 calls per year =12,000 calls

12,000 calls X 30 min each = 360,000 mins in sales calls.

360,000 mins/60 mins per hour = 6,000 hours needed per year

40 hr work week X .75 (time spent on selling)= 30 hrs a week (per sales person)

30 hr X 50 weeks per year = 1,500 hours per sales person per year

6,000 hours of coverage needed/1,500 hours per sales person = 4 sales people needed.

Source(s): I used my brain thanks
• h=hours, w=weeks, m=minutes. 40h x 50w = 2000h. 2000h x 3/4 = 1500h. 1500h x 60 = 90000m. One clerk can call 90,000 minutes a year. 90000m / 12months = 7,500m per month. 7500m / 30 = 250 calls per month, so they would need 4 clerks.

Source(s): My mind