Question

1. How many sales would a salaried rep need in order to cover his/her salary?

Hint: Look at this excerpt from the case:

a territory with a sales volume of $300,000 incurred sales cost of $45,000

1. assume the same 15% cost of sales
2. calculate the sales across the range of salaries $30,000, $32,500, and $35,000 and the range of expenses $5,000, $6,000, and $7,000.

**Hint: creating a table will help you

Answer 1

Salaries (1)	30,000	32,500	35,000
Expenses (2)	5,000	6,000	7,000
Total Expenses (3) = (1)+(2)	35,000	38,500	42,000
Gross Profit required to cover salaries and other expenses (4) = (3)	35,000	38,500	42,000
G.P Percentage (5)	15%	15%	15%
Sales Required to cover salary (6) = (4)/(5)	233,333.33	256,666.67	280,000.00