If Independent Sales Agents Receive a 7% Commission on Sales

question 17

Multiple Choice

If independent sales agents receive a 7% commission on sales with overhead of $70,000 and company salespeople receive a 5% commission with salary and overhead costs of $500,000, what is the break-even point between the two choices?

• A) $28,500,000
• B) $21,500,000
• C) $25,000,000
• D) $23,500,000
• E) $20,500,000

---

Definitions:

Base Year Amount

A reference figure used in economic and financial analysis, representing a specific year's data against which other years' data are compared.

Current Year Amount

The total financial figures, such as revenue, expenses, or profits, calculated for the company's ongoing fiscal year.

Percentage Increase

The rate of growth of a quantity, expressed as a fraction of its previous value and shown as a percentage.

Sales Data

Information related to the amount, timing, and composition of a company's sales.