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Essay text:
One alarming fact about his business is
the lack of a sales staff, yet the revenue has been able to grow at a fast
pace; 18% in 1989, 34% in 1990, 19% in 1991. By adding another an
experienced salesman that is working for a base salary plus
commission, they can grow the revenues even more. By having this
person work on commission, this will eat into the profit margin for the
materials he is selling. But the net impact to the BLC will be positive. I
would advise Mr. Butler to select the LOC for up to $465,000 because he
can take out as little as he needs. He does not need all $465,000 this
quarter, but he may need some in the first and last quarters of the year
because he obtains 55% of his revenues in the second and third
quarters...
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