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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.)
 

Sep 08 2020 Read more Less More

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