Use the Following Information for Questions
Truckel, Inc -Saran Company Has Contacted Truckel with an Offer to Sell

question 96

Multiple Choice

Use the following information for questions
Truckel, Inc. currently manufactures a wicket as its main product. The costs per unit are as follows: $\begin{array}{lr}\text { Direct materials and direct labor } & \$ 11 \\\text { Variable overhead } & 5 \\\text { Fixed overhead } & 8\\\text { Total }&\$24\end{array}$
-Saran Company has contacted Truckel with an offer to sell it 5,000 of the wickets for $18 each. If Truckel makes the wickets, variable costs are $16 per unit. Fixed costs are $8 per unit; however, $5 per unit is unavoidable. Should Truckel make or buy the wickets?

• A) Buy; savings = $15,000
• B) Buy; savings = $5,000
• C) Make; savings = $10,000
• D) Make; savings = $5,000

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Definitions:

Sales Call Allocation

The strategic distribution of sales effort and resources across various prospects or areas, to maximize effectiveness and efficiency.

Personality

A person’s distinguishing character traits, attitudes, or habits.

Visual Aids

Integrating visuals, such as documents, slides, and sales sheets as a way to visually convey or reinforce a point.

Account Objective

A specific goal that a sales team or individual aims to achieve within an account, such as increasing sales, enhancing customer relationships, or introducing new products.