Question

In order to increase sales, a company hired a telemarketing firm. Telemarketers logged 3496 hours, making 46397 presentations and 6350 sales, and increasing the company's revenue by $295300. The telemarketing firm charged $45 per hour for their services. How successful was the business venture?

Answer 1

The business venture was successful, generating a net increase in revenue of $137,980 after paying for telemarketing services, and achieving a conversion rate of about 13.7%.

Step-by-step explanation:

To determine the success of the business venture, we need to compare the increase in revenue against the cost of the telemarketing services. The company made an additional $295,300 in revenue while spending $157,320 on telemarketing services (3496 hours at $45 per hour).

Calculating the net gain, we subtract the total cost from the total additional revenue: $295,300 - $157,320 = $137,980.

So, the net increase in revenue after accounting for the cost of the telemarketing service is $137,980. We can also evaluate success by looking at the conversion rate; dividing 6350 sales by 46397 presentations gives a conversion rate of approximately 13.7%, which indicates the effectiveness of the presentations in generating sales.