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1. John's Clothing Company employs three sales people. It generates sales of $1 million on annual contribution margins of 30%. Rent is $45,000. Each sales

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1. John's Clothing Company employs three sales people. It generates sales of $1 million on annual contribution margins of 30%. Rent is $45,000. Each sales person costs $50,000 to employ. How much does Sales have to increase for John to break even with his new hires? 2. Fitness Athletics Gyms maintains a sales force for $10 million a year to generate new memberships. A broker has offered to perform the same selling tasks for 5% of commissions. What is the revenue breakeven point for Fitness to keep the business in-house versus hiring the broker

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