Question
A manufacturer is considering a switch from manufacturers' representatives to an internal sales force. The following cost estimates are available. Manufacturers' reps are paid
A manufacturer is considering a switch from manufacturers' representatives to an internal sales force. The following cost estimates are available. Manufacturers' reps are paid 7.4% commission and incur $645,000 in fixed costs, while an internal sales force has fixed costs projected at $1,990,000 and would receive 3.0% commission. At what sales volume would the manufacturer be indifferent between the two alternatives? Report your answer in dollars.
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Pricing Strategies A Marketing approach
Authors: Robert M. Schindler
1st edition
1412964741, 978-1412964746
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