Stage Technologies Is a London-Based Company That Supplies Engineering Solutions

question 26

Multiple Choice

Stage Technologies is a London-based company that supplies engineering solutions for the entertainment industry. It has helped the boy-band Westlife make a flying entrance onto stage and provided stage-rigging packages for Princess Cruise's vessels. The company was established in 1994 after a couple of production designers decided that the automation of theater productions could be done more safely and more efficiently by using modular production rather than the old "build-as-needed" formula. The company installs winches, stage lifts, and other equipment commonly used in stage productions. The equipment is designed so it can be operated from a single console without awkward or heavy lifting. Both opera companies and theaters see the benefit of such a system, but many are reluctant to buy because of perceived costs. John Hastie and Mark Ager, the company's best salespeople, must design sales presentations that address these concerns. Hastie walks into a prospect's office and asks, "How would you like to increase rehearsal time and ensure long-term cost savings?" From this opening line, you can assume that Hastie is most likely using a ________ presentation.

• A) persuasive selling
• B) logical reasoning
• C) need-satisfaction
• D) formula
• E) price/value

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Definitions:

Segment Margin

The amount of profit or loss generated by a specific segment of a business, after accounting for the direct and traceable costs of the segment.

Segmented Income Statement

An income statement that separates financial information into segments, such as departments or products, to analyze each segment's profitability.

Absorption Costing

Absorption costing is an accounting method allocating all manufacturing costs to the product, including fixed and variable costs.

Net Operating Income

A financial metric that calculates a company's profit after subtracting operating expenses but before interest and taxes.