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It costs $2,500 to send an employee to a three-day seminar. The information obtained at this seminar should allow the employee to increase their sales success rate by 1%. The employee has a success rate of 3% of converting a call into a sale. The employee makes five calls per day Mon through Fri for 50 weeks per year. If each sale is $2,000, what would be the increase in sales dollars be by attending this seminar?

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jepessoa

Answer:

$25,000

Explanation:

success rate without attending the seminar = 3% x 5 calls per day x 5 days per week x 50 weeks per year x $2,000 sale = $75,000

success rate after attending the seminar = 4% x 5 calls per day x 5 days per week x 50 weeks per year x $2,000 sale = $100,000

the increase in sales dollars due to the increase in productivity (after attending seminar) = $100,000 - $75,000 = $25,000

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