Examlex

Solved

A Firm Offers Group Discount for Orders Exceeding 15

question 48

Multiple Choice

A firm offers group discount for orders exceeding 15.Two firms are taking advantage of this offer.Sales to Company A averages $15, 000 of annual sales, has a 22% profit margin and an expected lifetime of 8 years.Company B averages $11, 000 of annual sales, has a 25% profit margin and an expected lifetime of 9 years.Which is the more important customer based on the higher expected lifetime value? Assume a 7% discount rate.


Definitions:

Teen Pregnancies

Pregnancies occurring in teenagers, often presenting unique social, economic, and health challenges.

Infertility

The inability to conceive a child after one year of regular, unprotected intercourse.

PLISSIT Model

A framework used in sexual health counseling that stands for Permission, Limited Information, Specific Suggestions, and Intensive Therapy.

Sexual Dysfunction

Disorders related to any phase of the sexual response cycle that prevent the individual or couple from experiencing satisfaction from sexual activity.

Related Questions