Fundamentals of Selling 13th Edition by Charles Futrell

Exercise 17

Assume a sales manager determines that in a given territory each salesperson sells approximately $500,000 yearly. Also, assume that the firm's cost of goods sold is estimated to be 65 percent of sales and that a salesperson's direct costs are $35,000 a year. Each salesperson works 48 weeks a year, eight hours a day, and averages five sales calls per day. Using this information, how much merchandise must each salesperson sell to break even
a. For the year
b. Each day
c. Each sales call