Tuesday
September 30, 2014

Homework Help: Managerial Economics

Posted by BJ on Sunday, December 20, 2009 at 1:18pm.

As a VP of sales for a rapidly growing company, you are grappling wirh the question of expanding the size of your direct sales force (from its current level of 60 national salespeople). You are considering hiring from 5 to 10 additional personnel. How would you estimate the additional dollar cost of each additional sales person? Based on your company's past sales experience, how would you estimate the expected net revenue generated by an additional sales person? (Be specific about the information you might use to derive this estimate). How would you use these cost an revenue estimates to determine whether a sales force increase (or possibly a decrease) is warranted?

I need help finding an equation to answer this with, please help..

Thanks

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