Marketing: Wheels, Inc. manufactures bicycles sold through retail bicycle shops in the southeastern United States. The company has two salespeople that do more than just sell the products dash– they...


Marketing:


Wheels, Inc. manufactures bicycles sold through retail bicycle shops in the southeastern United States. The company has two salespeople that do more than just sell the products
dash–

they manage relationships with the bicycle shops to enable them to better meet​ consumers' needs. The​ company's sales reps visit the shops several times per​ year, often for hours at a time. The owner of Wheels is considering expanding to the rest of the country and would like to have distribution through
600

bicycle shops. To do​ so, however, the company would have to hire more salespeople. Each salesperson earns​ $40,000 plus 2 percent commission on all sales annually. Another alternative is to use the services of sales agents instead of its own sales force. Sales agents would be paid 5 percent of sales. Determine the number of salespeople Wheels needs if it has
600

bicycle shop accounts that need to be called on
five

times per year. Each sales call lasts approximately
3

hours

and each sales rep has approximately
750

hours per year to devote to customers.

Wheels needs

sales people. ​(Round to the nearest whole​ number.)


Jun 01, 2022
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