XYZ has annual sales of $36,000,000 and 1800 retail accounts. Retail salespeople earn $50,000 in base salary per year and are paid an additional 16% of sales as commission. The contribution margin for each unit of product sold is 30%. The 30% includes the commission from product sales. Salespeople work 50 weeks per year or 2000 hours per year assuming 40 hours per week. However, administrative work consumes 6 hours per week, so the effective time spent visiting customers is 34 hours per week. Each account is visited an average of 12 times per year and each account visit lasts for 3 hours on average. A. How would you characterize sales salaries and commission salaries (fixed or variable costs)? Sales staff Salaries => Costs Sales Commissions => Costs B. How many salespeople are currently employed to support $36,000,000 in sales at 1,800 accounts? C. The VP of Sales wants to increase the number of accounts covered from the amount identified in part B, (1800 accounts), to 2,200 accounts. How many additional salespeople will he/she have to hire to support 2,200 accounts? D. What is the breakeven revenue for the additional salesforce computed in part C, above? E. How many accounts would XYZ need to open to achieve breakeven? Would adding the number of salespeople determined in part C be the right thing to do? If So, why? If not, why not