Case summary:
Company B manufactures furniture and sells it to the outlets in the southeastern part of Country U. The company has two salesperson to manage their customer needs. The company wishes expand to other regions and would wish to have their distributions through 1,000 retail customer accounts.
To continue with this activity the company has to hire more salespeople and each salesperson earns $50,000 and 2% commission on sales. The other alternative is to utilize the service sales agent who would be made a payment of 10% of sales.
Characters in the case:
- Company B
- Country U
To determine: The level of sales that would be more cost efficient to Company B and the advantages and disadvantages of the sales force of a company over the independent sales agent.
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