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:

Insurance Policy

A contract between an individual or entity and an insurance company, detailing the terms and agreements in which the insurer agrees to pay the insured for specific loss, damage, illness, or death in return for payment of a premium.

Interim Coverage

Temporary insurance protection provided between the application and the actual issuance of a policy.

Fraudulent Concealment

The act of deliberately hiding or omitting relevant information or facts with the intent to deceive or defraud.

Health Insurance

A form of insurance coverage that pays for medical and surgical expenses incurred by the insured.