As sales manager Charles is trying to find a way to determine optimal sales force size. He knows that one way is determining how many sales calls per year are necessary for the organization to serve customers effectively and then dividing this total by the average number of sales calls a salesperson makes annually. The other method is based on ________________, in which additional salespeople are added to the sales force until the cost of an additional salesperson equals the additional sales generated by that person.

Question

Quizplus · Accepted Answer

The second method mentioned in the question refers to the concept of marginal analysis, which involves comparing the cost of an additional unit (in this case, an additional salesperson) to the additional benefit or revenue generated by that unit. This is often used by businesses to determine the optimal level of inputs (such as labor) to maximize profitability.

As Sales Manager Charles Is Trying to Find a Way