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On the basis of a given value for projected sales, managers can determine the break-even number of employees for a firm as follows:

      Breakeven number of employees (#) =
      {Sales ($) x [Margin (%) - Commission (%)]} ÷ ({Salary ($) + Expenses ($) + Bonus ($)}[1]


  1. ^ Farris, Paul W.; Neil T. Bendle; Phillip E. Pfeifer; and David J. Reibstein (2010). Marketing Metrics: The Definitive Guide to Measuring Marketing Performance (Second Edition). Upper Saddle River, New Jersey: Pearson Education, Inc. <>

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