A fiRm Has a DOL = 2

question 88

Multiple Choice

A firm has a DOL = 2.5. If sales decrease by 20%, then OCF will ____________.

• A) decrease by 20%
• B) increase by 5%
• C) increase by 20%
• D) decrease by 12.5%
• E) decrease by 50%

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Definitions:

Marketing Concept

The idea that a firm’s long-term success must include a companywide effort to satisfy customer needs and wants.

Sales Presentation

A pitch or demonstration given to prospective buyers with the goal of making a sale by highlighting the benefits and features of a product or service.

Product's Major Features

The primary attributes or characteristics that define a product and differentiate it from competitors.

Trial Closes

Techniques used in sales to ask potential customers for a decision on a minor aspect of a purchase, used to gauge the readiness for the final buy.