Sleep Time Produces Mattresses

question 61

Multiple Choice

Sleep Time produces mattresses. Each mattress has a variable cost of $260, fixed costs of $56,000 per month, and a unit selling price of $500. If the company produces and sells 400 mattresses in February, how much profit will the company expect for March assuming that number of mattresses sold and selling price per mattress remains the same as that of February month?

• A) $96,000
• B) $160,000
• C) $40,000
• D) $200,000

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Definitions:

Sales Process

A series of steps that a sales team takes to move a customer from potential prospect to buyer, often including stages such as outreach, discovery, negotiation, and closing.

Relationship Selling

A sales approach that involves building and maintaining customer trust over a long period of time.

Sales Quotas

Targets set for salespeople or departments to achieve in a specified timeframe to measure performance.

Periodic

Occurring or appearing at regular intervals or cycles.