Question: Test Content Question 1 Alisha Textile Co . Spends $ 5 5 0 , 0 0 0 to maintain a sales force that calls on

Test Content
Question 1
Alisha Textile Co. Spends $550,000 to maintain a sales force that calls on fashion labels and wholesales. A broker offers to perform the same selling task for a 5% commission. If the revenue is $10 million, is it benefitable to hire this broker?
None of the above
No, because the total variable selling cost is less than the sales force maintenance cost.
No, because the total variable selling cost is more than the sales force maintenance cost.
Yes, because the total variable selling cost is less than the sales force maintenance cost.
Yes, because the total variable selling cost is more than the sales force maintenance cost.
 Test Content Question 1 Alisha Textile Co. Spends $550,000 to maintain

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