Manufacturers representatives to an internal sales force

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Reference no: EM13725305

A manufacturer is considering a switch from manufacturers’ representatives to an internal sales force. The following cost estimates are available. Manufacturers’ reps are paid 8.8% commission and incur $655,000 in fixed costs; while an internal sales force has fixed costs projected at $1,800,000 and would receive 3.5% commission. At what sales volume would the manufacturer be indifferent between the two alternatives? Report your answer in dollars.

Reference no: EM13725305

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