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A manufacturer is considering a switch from manufacturers’ representatives to an internal sales force. The following cost estimates are available. Manufacturers’ reps are paid 8.8% commission and incur $655,000 in fixed costs; while an internal sales force has fixed costs projected at $1,800,000 and would receive 3.5% commission. At what sales volume would the manufacturer be indifferent between the two alternatives? Report your answer in dollars.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91264684

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