The sales of your product are low compared to your competition.The decision facing you is whether to use a sales agency (brokers,manufacturers' representatives)or hire a field sales force.The fixed costs of engaging a sales agency are lower than those of establishing a company sales force,but costs rise faster through an agency.When figuring out sales and costs,the intersection of the costs between sales agencies and sales force (SB)means that ________.

Question

Quizplus · Accepted Answer

The intersection point (SB) indicates where the costs of using a sales agency and hiring a field sales force are equal. Below this point, the sales agency is more cost-effective due to its lower fixed costs.

The Sales of Your Product Are Low Compared to Your