Manufactures decorative lighting fixtures sold primarily

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Light co, Inc. manufactures decorative lighting fixtures sold primarily in the eastern United States. Light co wants to expand to the Midwest and Southern United States and intends to hire 10 new sales representatives to secure distribution for its products. Sales reps will acquire new retail accounts and manage those accounts after acquisition. Each sales rep earns a salary of $50,000 plus 2 percent commission. Each retailer generates an average $50,000 in revenue for Light co. Refer to appendix 3, marketing by the Numbers, to answer the following questions. if Light co's contribution margin is 40 percent, what increase sales will it need to break even on the increase in fixed costs to hire the new sales reps. How many new retail accounts must the company acquire to break even on this tactic. What average number of accounts must each new rep acquire?

Reference no: EM13821031

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