The Company Wants to Spend 5% of Sales on the Sales

Multiple Choice

The company wants to spend 5% of sales on the sales force, the cost of supporting a salesperson is estimated at approximately $127,500 per person, and 15% 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 $12 million.

A) $420,000
B) $480,800
C) $510,000
D) $600,800
E) none of the above