Question: Five years ago, to respond to cost-cutting pressure during a weak economy, your company decided to close five sales offices employing five people each. Currently
Five years ago, to respond to cost-cutting pressure during a weak economy, your company decided to close five sales offices employing five people each. Currently your company employs independent sales agents who earn a 2.5% commission on all sales. The economy has recently turned around, and one of your colleagues suggests that you could hire 25 people for $50,000 per employee to do the sales job as independent agents at a cost of goods sold (COGS) of only 0.5%. What concerns might you have about such an approach?
Step by Step Solution
3.45 Rating (161 Votes )
There are 3 Steps involved in it
The level of pay is important for getting people to wor... View full answer
Get step-by-step solutions from verified subject matter experts
Document Format (1 attachment)
90-B-E-M-E (317).docx
120 KBs Word File
