Which of the Following Is Not One of the Sales

question 4

Multiple Choice

Which of the following is not one of the sales organization alternatives discussed in the text?

• A) Geographic
• B) Product
• C) Market
• D) Functional
• E) Decentralized

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Definitions:

Dollar Contribution Margin

The difference between total sales revenue and total variable costs, expressed in absolute currency terms.

Variable Cost

Costs that change in proportion to the level of production activity or volume, such as raw material costs and direct labor costs.

Fixed Cost

A cost that remains constant, in total, regardless of changes in the level of activity within the relevant range. If a fixed cost is expressed on a per unit basis, it varies inversely with the level of activity.

Margin of Safety Percentage

A metric that measures how much sales can drop before a business reaches its break-even point, typically expressed as a percentage.