Question: A company is debating whether to outsource its salesforce from the current in-house structure. The current cost of the salesforce is a commission of 5%

A company is debating whether to outsource its salesforce from the current in-house structure. The current cost of the salesforce is a commission of 5% of sales plus base salaries and administrative costs of $500,000 for the year. The alternative is a commission of 7.5% of sales with no base salary or administrative cost. Find the level of sales at which the two structures are equal.

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