During each year, CSL Computer Company needs totrain 27 service representatives. No matter how manystudents are trained, it costs $12,000 to run a trainingprogram. Since service reps earn a monthly salary of $1,500, cost of goods sold during a year CSL does not want to train them before they are needed.Each training session takes one month.a State the assumptions needed for the EOQ model tobe applicable.b How many service representatives should be in eachtraining group?c How many training programs should CSL undertakeeach year?d How many trained service reps will be availablewhen each training program begins?

Marketing
20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter19: Pricing Concepts
Section: Chapter Questions
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During each year, CSL Computer Company needs to
train 27 service representatives. No matter how many
students are trained, it costs $12,000 to run a training
program. Since service reps earn a monthly salary of $1,500,

cost of goods sold during a year

CSL does not want to train them before they are needed.
Each training session takes one month.
a State the assumptions needed for the EOQ model to
be applicable.
b How many service representatives should be in each
training group?
c How many training programs should CSL undertake
each year?
d How many trained service reps will be available
when each training program begins?

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