Shannons Brewery in Keller, Texas is considering using a sales team to help it penetrate...
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Shannons 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 salesforce would entail fixed costs of salaries and administrative overhead of $300,000 per year. These salespeople would also receive a 3.2% 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 9.9% on all sales. At what level of sales will the costs of each sales force be equal? Round your answer to the nearest one dollar.
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