Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Shannon's Brewery in Keller, Texas is considering using a sales team to help it penetrate market areas not served by its current distributors. However, Shannon

Shannon's Brewery in Keller, Texas is considering using a sales team to help it penetrate market areas not served by its current distributors. However, Shannon Carter, the CEO, wants to know whether it would be cheaper to hire an independent outside sales force rather than hire and train his own sales personnel. Estimates are that the costs of hiring, training, and maintaining his own sales force would entail fixed costs of salaries and administrative overhead of $300,000 per year. These sales people would also receive a 3.1% commission on all sales. If going with the independent sales force option, all costs would be variable in that these reps would be paid a commission of 9.8% on all sales. At what level of sales will the costs of each sales force be equal? Round your answer to the nearest dollar value. Round your answer to the fiearest one dollar.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Operations Research

Authors: Frederick Hillier, Gerald Lieberman

8th Edition

0073211141, 9780073211145

More Books

Students also viewed these General Management questions

Question

What are the key features of an algorithm?

Answered: 1 week ago

Question

please dont use chat gpt 9 2 4

Answered: 1 week ago

Question

Explain the Neolithic age compared to the paleolithic age ?

Answered: 1 week ago

Question

What is loss of bone density and strength as ?

Answered: 1 week ago