Reference no: EM132903771

Question - First, you have decided to divide the nation into two regions with a regional sales manager in charge of each. According to industry sources, a regional sales manager's average sales is $120,000. Second, a number of district managers will be needed to manage the salespeople directly. A span of control of 10:1 (10 salespeople to 1 manager) is believed to be necessary. Salaries for district managers average $90,000. Incentive pay for managers, both regional and district, is expected to be 0.35 percent of sales. Third, it should cost $12,000 to recruit and train each salesperson. Finally, management wants sales to grow by 10 percent next year to $220 million, so more than 100 salespeople will need to be hired. Average sales per salesperson are expected to be $2 million. Given this new information, which type of sales force will be less expensive? What is the breakeven sales volume now?