The Unhappy Employee (Scenario)

question 18

Multiple Choice

The Unhappy Employee (Scenario)
Mariam is not happy in her current employment. Her job requires that she attempt to sell some products that she feels are inferior to other products in her product line. Mariam has a quota that requires that she sell both high- and low- quality products before she can receive her commission. In her opinion, the lower quality products are overpriced.
-Mariam can be expected to______ the dissonance that she feels.

• A) reduce
• B) reject
• C) increase
• D) accept

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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

Net Operating Income is the total profit of a company after deducting operating expenses but before interest and taxes.

Net Operating Income

A company's profitability from its regular business operations, excluding expenses and incomes from other non-operating activities.

Contribution Margin Per Unit

The difference between the selling price per unit and the variable costs per unit.