Carla,a Team Leader in Charge of Customer Relationship Management,is Planning

question 68

Multiple Choice

Carla,a team leader in charge of customer relationship management,is planning strategies for improving the profitability of her firm's least profitable but loyal customers.She is also examining methods for "firing" customers in this group who cannot be made profitable.To which of the following customer relationship groups do these customers belong?

• A)butterflies
• B)true friends
• C)strangers
• D)barnacles
• E)short-term customers

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Definitions:

Fixed Overhead Costs

Expenses that do not change with the level of output within a certain range of activity, such as rent, salaries, and insurance.

Variable Costs

Expenses that fluctuate in unison with the amount of production or the quantity of goods produced.

Sales Volume Variance

A measure used in variance analysis to assess the difference between the actual units sold and the budgeted sales volume, impacting revenue.

Actual Sales Volume

The real number of units sold or services provided by a business during a specific period, as opposed to forecasted or planned sales volumes.