If There Are 10 Manufacturers and 200 Retailers,and Each Manufacturer

question 28

Multiple Choice

If there are 10 manufacturers and 200 retailers,and each manufacturer has 12 interactions per year with each retailer at a cost of $100 per transaction,the total transaction cost of doing business through this channel method is ________.

• A)$2,000
• B)$24,000
• C)$200,000
• D)$1,200,000
• E)$2,400,000

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Definitions:

Return On Investment (ROI)

A measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the return of the investment by its cost.

Residual Income

The net income that an investment earns beyond the minimum rate of return.

Margin

Generally refers to the difference between the selling price and the cost of a product or service, often expressed as a percentage of the selling price.

Customer Service Department

A department in an organization responsible for managing questions, assisting customers with problems, and offering details about the company's products or services.