The Company Wants to Spend 5% of Sales on the Sales

question 8

Multiple Choice

The company wants to spend 5% of sales on the sales force, the cost of supporting a salesperson is estimated at approximately $127,500 per person, and 15% of the sales force budget is for management and other costs. Using the percent of sales method, calculate the sales force budget, if sales are forecasted to be $12 million.

• A) 3 salespeople
• B) 4 salespeople
• C) 5 salespeople
• D) 6 salespeople
• E) none of the above

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Definitions:

Nutrition

The process of providing or obtaining the food necessary for health and growth.

Reliability

The degree to which an assessment tool produces stable and consistent results.

Correlation

A mathematical indicator showing how much two or more variables change in relation to each other.

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Numerical representations of an individual's performance on standardized tests or examinations.