As a Sales Manager Moves Closer to the Top of the Organization

question 24

Multiple Choice

As a sales manager moves closer to the top of the organization chart,the manager's day-to-day tasks:

• A)have less to do with the sales process
• B)involve filling out more paperwork each day
• C)cannot be performed by just one person
• D)involve selling to bigger and bigger accounts
• E)require more travel and entertainment

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Definitions:

DOL

Degree of Operating Leverage; a measure of a company's fixed costs as a percentage of its total costs, indicating how earnings before interest and taxes (EBIT) change in response to a change in sales volume.

Contribution Margin

The amount of revenue remaining after deducting variable costs, used to cover fixed costs and generate profit.

Variable Cost

Expenses that vary depending on the amount of products or services a company generates.

Contribution

The amount of money or resources that an individual or entity provides towards a particular project, investment, or cause.