s to the yearly revenue 12 times, that the $9,000 secured in February contributes 11 times, and SO on.) If that simple division were done, it would imply that you needed 115 people. The more exact calculation shown in the following section shows that 60 people in year 2 quarter 1 (Y2Q1), 68 in Y2Q2, 80 in Y2Q3, and 92 in Y2Q4 suffice. This is because there is already an exit run rate that does not have to be resold in year 2. (There could be some erosion of that run rate by some figure such as 5 per- cent that we did not take into account in the following calculation, but that could easily be modeled.) Assuming the same revenues ($13.1 million for year 1, $80.5 million for year 2, and $210.1 million for year 3) and a revenue per employee of $70,000 for year 1, $70,000 for year 2, and $140,000 for year 3, the total number of company employees is, respectively, 187, 1,500, and 1,501. The number of salespeople is (as approximated from the following table) 31 for year 1, 80 for year 2, and 128 for year 3. This implies that in year 1 there would be 156 people in operations and management and 31 in sales; in year 2 there would be 1,070 people in operations and management and 80 in sales; and in year 3 there would be 1,373 in operations and management and 128 in sales. Copyright 2002 The McGraw-Hill Companies, Inc. Click Here for Terms of Use. Table B-1 Calculation of the Number of Sales AEs First Fiscal Year 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. Year Total Revenue projections $360,000 $1,656,000 $3,924,000 $7,164,000 $13,104,000 Cumulative revenue projections $360,000 $2,016,000 $5,940,000 $13,104,000 $13,104,000 Previous run rate $180,000 $738,000 $1,593,000 Old revenue from run rate $540,000 $2,214,000 $4,779,000 New revenue to be achieved $360,000 $1,116,000 $1,710,000 $2,385,000 Employees=revenue units @$9,000 Exit run rate $180,000 $738,000 $1,593,000 $2,785,500 Second Fiscal Year 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. Year Total Revenue projections $11,376,000 $16,560,000 $22,716,000 $29,844,000 $80,496,000 Cumulative