Clearwater Hampers Is a Small British Company That Sells Luxury

question 86

Multiple Choice

Clearwater Hampers is a small British company that sells luxury food and drinks in various combinations in picnic hampers. Food and wine are seen as classic, fail-safe gifts in a market where present-buying is increasingly tricky. Corporate customers, both in the United Kingdom and abroad, are important to the business as well as are a number of department stores. Clearwater has had several orders for more than a quarter of a million dollars and prides itself on how much repeat business it does. The company's leading salesperson, Peter Austin, is placed in charge of an important territory divided on the basis of geography and sales potential. He classifies his customers according to the size of their average orders. In preparing for his sales call allocation plans, Austin should consider all of the following EXCEPT:

• A) non-selling time.
• B) cost of goods sold.
• C) time required for each sales call.
• D) frequency of sales calls.
• E) return on time invested.

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Definitions:

Control Limits

Statistical boundaries set on process control charts that indicate the acceptable range of process variation.

Standard Deviation

A measure of the dispersion or spread of a set of data points from its mean, indicating how much variation exists from the average.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values in a dataset deviate from the mean.

Nonconforming Items

Products or outputs that do not meet the specified standards or quality criteria.