According to economic theory,sales managers should hire as many salespeople as possible:
A)until the market is saturated
B)until the salespeople feel too much competition in the workplace and become dissatisfied
C)as long as there are no compelling reasons to stop hiring
D)as long as the salespeople are willing to work for the wages offered
E)as long as each salesperson sells more than he or she costs the company

Question

Quizplus · Accepted Answer

According to economic theory, sales managers should hire as many salespeople as long as each salesperson sells more than he or she costs the company. This means that the revenue generated by the salesperson should exceed the cost of their salary, benefits, and other expenses associated with their employment. If a salesperson is generating revenue that is less than their cost, then their employment becomes a net loss for the company. Therefore, the company should only continue to hire salespeople if they will contribute positively to the company's profits.

According to Economic Theory,sales Managers Should Hire as Many Salespeople