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Unformatted text preview: -2% on the sales above $600 million The sales company argued that their sales force was much more effective: for similar clients, their revenue generated per dollar spent on sales was about 30% higher than what the client currently achieved. The client had about $500 million in advertising sales and had no other sources of revenue. Their fixed cost was $450 million, which went mainly to the purchasing of television programs and to general overhead. Finally, they had $50 million in sales expenses, all of which was variable (in function of the number of ads sold). If you were Susan, would you advise your client to accept the proposal?...
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- Fall '04