Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. it's your turn. show us what you know shannon's br

It's Your Turn. Show Us What You Know Shannon's Brewery in Keller, Texas is considering...

90.2K

Verified Solution

Question

Accounting

image
It's Your Turn. Show Us What You Know 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 recelve a 3.5% 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 9.6% 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 nearest one dollar

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

4. the researcher wishes to use numerical descriptive measures to summarize the data on each of...

Statistics
Q

Formula Based Problem i. Draw a working circuit with one battery and two resistors in...

Physics
Q

Water is filled in a uniform container of area of cross section A A hole...

Physics
Q

On the plane passing through points P 7 4 4 Q 8 3 5 and...

Algebra
Q

show your work please Take me to the text Manuco is considering...

Accounting
Q

How would the analytical procedures be different if you were completing it as part of...

Accounting
Q

Governments at all levels must submit budgets; most are required to submit balanced budgets where...

Accounting
Q

Skysong Corporation issued a 5-year, $84,000, zero-interest-bearing note to Garcia Company on January 1, 2025,...

Accounting
Q

Issued 6500 shares of $10 par common stock at $11, receiving cash. what would...

Accounting
Q

In the XY partnership, X is the general partner with a 20% interest and Y...

Accounting
Q

Rs. 75 lakhs 1.25 Net worth Net worth = Rs. 60 lakhs 7 Calculation of...

Accounting
Q

Below is a list of key terms. ______ 1) Bill and...

Accounting