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One of the first sales management decisions a firm must make is whether the company should build its own salesforce or hire independent agents such

One 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. In addition, salary and benefits for a company salesforcewould be incurred at a total cost of $500,000 per year. At what sales level would independent salespeople be less costly? Explain answer and show work

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