Advertising Media Sales

Assignment 6: Preparing for the Future todayYou’ve just been hired by your second media employer, WEAK-TV. The sales manager, HerbGardin, tells you that you will be given as many clients as you can handle, but most sales representativescarry a “book” of 100 clients, 60 of which are active during any given month. Yourrate of commission is 8 percent, but you are paid ONLY on collected statements. Station figuresindicate that 97 percent of all statements are collected. However, if you sell over $450,000 in onecalendar year, you get 12% commission on everything over $450,000 for the rest of that year. !You are married now, and have two children. Your demands and expectations have increased.You feel you have to make at least $100,000 (before taxes) during your first year at WEAK-TV.The company offers health insurance, free membership at a health club, but has no retirementplan to which it makes contributions on your behalf. !Answer the following questions: !1. In order to reach your goal of $100,000 (gross income), how much will you have to sell thisyear in commissionable sales? The average monthly TV advertising contract in your marketis around $3,700.2. What should you sell each month to reach your objective?3. What is your weekly goal in sales dollars?4. Daily goals: Given our answer in No. 3 (above), (a) how much should you sell each day, onaverage? (b) Given that, how many clients should you get to buy advertising each day? Explainthe numbers in your answer.5. (a) What percentage of your income will you be putting into a retirement program? If a percentageisn’t a useful figure for you, then how much (in dollars) will you save each year? (b)What is the best retirement program (401K, 403B, IRA [Roth or Traditional], etc.) into whichyou can put your money at this time? Justify your response.6. List what you believe will be the top ten categories of personal expenses that will put pressureon you to produce income this year. Remember, some may be business-related. Please bespecific; “clothes” or “child expenses” are terms too general to result in useful thought.!Type your answers on a separate sheet(s) including questions as well as the answers. Displayyour production figures and calculations (questions 1-4) in an Excel Spreadsheet. You may explainyour answers providing the instructor with some insight into the assumptions you used tocome to these conclusions. It could help your grade. All explanations should be on the Excelsheet.This assignment is due not later than the final examination time, and will be accepted assoon as you are satisfied with your work.

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