The Company Wants to Spend 8% of Sales on the Sales

Multiple Choice

The company wants to spend 8% of sales on the sales force, the cost of supporting a salesperson is estimated at approximately $80,000 per person, and 20% of the sales force budget is for management and other costs. Using the percent of sales method, calculate the sales force budget, if sales are forecasted to be $3.2 million.

A) $246,000
B) $204,800
C) $196,800
D) $192,800
E) none of the above