Company W manufactures the bicycles that are sold through the retail bicycle shops in Country U. The firm has 2 salespeople and they maintain good relationship with the bicycle shops to better meet the customer’s requirements. The firm’s owner is planning to maximize it to rest of the country, which requires more salespeople to be hired. Every salesperson gets $40,000 in addition to 2% commission on every yearly sales. Another way is to utilize the sales agents for which they will be paid 5% of sales. Characters in given case: Company W To compute: The level of sales and explain the benefits and disadvantages of utilizing the own sales force company versus the independent agents.

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Chapter 13, Problem 13.14MA

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Company W manufactures the bicycles that are sold through the retail bicycle shops in Country U. The firm has 2 salespeople and they maintain good relationship with the bicycle shops to better meet the customer’s requirements. The firm’s owner is planning to maximize it to rest of the country, which requires more salespeople to be hired. Every salesperson gets $40,000 in addition to 2% commission on every yearly sales. Another way is to utilize the sales agents for which they will be paid 5% of sales.

Characters in given case:

Company W

To compute: The level of sales and explain the benefits and disadvantages of utilizing the own sales force company versus the independent agents.

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