Ned Is a Customer Service Representative at Landmark State Bank

question 85

Multiple Choice

Ned is a customer service representative at Landmark State Bank. When a person comes in to get assistance with his or her checking account or open a new account, Ned also suggests the client rent one of the bank's safe deposit boxes to store valuables. Ned is engaging in:

• A)trading up.
• B)total customer service.
• C)upgrading.
• D)total customer management.
• E)none of the above

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Definitions:

Operating Leverage

A measure of how revenue growth translates into growth in operating income, influenced by the proportion of fixed costs in total costs.

Net Operating Income

Income produced by a firm's regular activities, not including taxes and interest.

Sales Increase

The rise in the quantity or volume of products sold or revenue generated over a specific period.

Variable Expenses

Costs that vary in direct proportion to changes in the level of production or sales volume, such as materials or sales commissions.