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8 March, 08:30

It is possible for two salespeople to generate the same number of sales dollars and achieve the same sales/sales quota evaluation, yet one produces more gross profits for the firm. true or false

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  1. 8 March, 11:42
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    The answer is - True

    Explanation:

    Gross profit can be defined as the profit a company makes after subtracting the cost of the goods sold from the business's revenue (the total sales). This can be explained as deducting the costs of making, selling or providing a product from the total amount of money earned after selling the product.

    Two sales people therefore can generate the same number of sales dollars and achieve the same sales / sales quota evaluation and yet one will still have more gross profit for the firm. This is because their cost of production varies such that after deducting the cost of production from their generated revenue, one of them will have a higher gross profit than the other.

    I hope this explains it for you.
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