A manufacturer is considering a switch from manufacturers representatives to an internal sales force. The...

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Accounting

A manufacturer is considering a switch from manufacturers representatives to an internal sales force. The following cost estimates are available. Manufacturers reps are paid 8.3% commission and incur $570,000 in fixed costs, while an internal sales force has fixed costs projected at $2,130,000 and would receive 3.2% commission. Assume that sales revenue is double the breakeven volume or the point at which the manufacturer would be indifference between reps and an internal sales force. At this

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