The Company Wants to Spend 8% of Sales on the Sales

The company wants to spend 8% of sales on the sales force, the cost of supporting a salesperson is estimated at approximately $80,000 per person, and 20% of the sales force budget is for management and other costs. Calculate the number of salespeople the budget will support, if sales are forecasted to be $3.2 million.

A) 2 people
B) 2.5 people
C) 3 people
D) 3.5 people
E) none of the above