Business Plan evaluation of PROCEED for Company A

Estimated Reduction in sales cycle Revenue proceeds due to reduction in cycle 6 days $6.00 million

Assuming that the new sales representatives in an year are 20 Revenue generated due to reduction in start-up time for new sales representative Revenue generated due to reduction in sales representative turnover

Therefore, total revenue generated with the sales of PROCEED is $9.33 Cost of using PROCEED is equal to implementation and training cost + license fee + annual maintainence and supp Therefore, Cost of using PROCEED $2.75 million Total Sales with using PROCEED Selling cost of using PROCEED $129.33 million $38.75 million

Lets Assume that the total sale increases to $129.33 million without using PROCEED. In this case the selling cost w Therefore, Savings $3.10 million

We can see that the savings exceed the initial setup cost and hence we can say that PROCEED is profitable for co

Business Plan evaluation of PROCEED for Company B

Estimated Reduction in sales cycle Revenue proceeds due to reduction in cycle 15 days $29.17 million

Assuming that the new sales representatives in an year are 62.5 Revenue generated due to reduction in start-up time for new sales representative Revenue generated due to reduction in sales representative turnover

Therefore, total revenue generated with the sales of PROCEED is $39.90 Cost of using PROCEED is equal to implementation and training cost + license fee + annual maintainence and supp Therefore, Cost of using PROCEED $6.51 million Total Sales with using PROCEED Selling cost of using PROCEED $389.90 million $129.01 million

Lets Assume that the total sale increases to $389.90 million without using PROCEED. In this case the selling cost w Therefore, Savings $13.95 million

We can see that the savings exceed the initial setup cost and hence we can say that PROCEED is profitable for co

or Company A

(Assuming hiring of new sales representative is 60/360 i.e., 1/6th of the total number) 0.933333 million $2.40 million

million e + annual maintainence and support + hardware + startup cost + annual cost of internal resource

EED. In this case the selling cost will be 30% of sales i.e., $38.8 million plus variable cost i.e., $42.7 million

that PROCEED is profitable for company A

or Company B

(Assuming hiring of new sales representative is 90/360 i.e., 1/4th of the total number) $5.83 million $4.90 million

million e + annual maintainence and support + hardware + startup cost + annual cost of internal resource

EED. In this case the selling cost will be 35% of sales i.e., $136.465 million plus variable cost i.e., $142.96 million

that PROCEED is profitable for company B