Select Comfort, a Producer of Adjustable Air Mattresses, Sells Most

question 71

Multiple Choice

Select Comfort, a producer of adjustable air mattresses, sells most of its products through direct mail sales and on its website. This channel would be classified as

• A)direct distribution.
• B)producer, retailer, consumer.
• C)telemarketing.
• D)direct-marketing.
• E)indirect marketing.

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Definitions:

Variable Costs

Costs that vary directly with the level of production or sales volume, such as raw materials and packaging.

Scattergraph Method

A statistical tool used to plot data points on a graph to identify potential trends, often used in cost accounting to analyze variable costs against a level of activity.

Cost Behaviours

Describes how different types of costs change or remain constant with variations in business operations' volume or scale.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue contributes towards covering fixed costs and generating profit.