Question
You are evaluating a project with the following P&L forecasts. You've been asked to understand the impact of having a larger sales force, which would
You are evaluating a project with the following P&L forecasts. You've been asked to understand the impact of having a larger sales force, which would increase SG&A from 10% of Sales to 12.5% of Sales. With a larger sales force, the company will be able to generate an annual increase on sales and gross profit of 5%. Assume a tax rate of 24%. Should the company increase the sales force based on your scenario analysis?
a.
No, the company would generate less sales resulting from the larger sales force
b.
No, the company would generate less income resulting from the larger sales force
c.
Yes, the company would generate more income resulting from the larger sales force
d.
Yes, the company would generate more sales resulting from the larger sales force
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