Of the First Sales Management Decisions a Firm Must Make

question 280

Essay

of the first sales management decisions a firm must make is whether the company should build its own salesforce or hire independent agents such as manufacturers' representatives.Abacus Designs sells high-end furniture to retailers and needs to make this decision.Independent agents would receive a 5 percent commission on sales while a company salesforce would receive a 3 percent commission,salaries,and benefits.In addition,with company salespeople,sales administration costs would be incurred for a total fixed cost of $500,000 per year.At what sales level would independent salespeople be less costly?

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