What Is Wrong with the Following Service Goal, "All Customers

question 71

Essay

What is wrong with the following service goal, "All customers should leave the store with a positive feeling about the store, its merchandise, and its employees."

---

Definitions:

Unit Variable

A measurement that reflects how variable costs change per unit of production or activity level.

Unit Fixed

This specifies a cost or charge that remains constant per unit regardless of changes in the level of activity or volume of production.

Costs

Costs refer to the expenditures incurred by a business in the process of generating revenues.

Unit Contribution Margin

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