The Company Wants to Spend 8% of Sales on the Sales

question 15

Multiple Choice

The company wants to spend 8% of sales on the sales force, the cost of supporting a salesperson is estimated at approximately $80,000 per person, and 20% of the sales force budget is for management and other costs. Calculate the number of salespeople the budget will support, if sales are forecasted to be $3.2 million.

• A) 2 people
• B) 2.5 people
• C) 3 people
• D) 3.5 people
• E) none of the above

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Definitions:

Controlled Conditions

Experimental setups where all variables are kept constant except for the one being tested to ensure the results are due to the variable of interest.

Experimentation

The process of conducting tests or trials to discover or verify something.

Statistical Reasoning

The process of using statistical methods and data analysis to make informed decisions or draw conclusions.

Field Experiments

Research studies conducted in real-world settings outside the laboratory to examine the validity of theoretical concepts in natural environments.