Claudine Provides Computer-Based Solutions to Offices and Helps Them Reduce

question 62

Multiple Choice

Claudine provides computer-based solutions to offices and helps them reduce their carbon footprint by reducing paper consumption. To expand her business, she is planning to send unsolicited proposals to a dozen offices. While doing this, she ________.

• A) should use the direct approach
• B) should avoid mentioning costs this early
• C) should keep the proposal short
• D) needs to convince her readers that a problem or an opportunity exists

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Definitions:

Net Operating Income

A financial metric that calculates a company's profit after subtracting operating expenses, excluding taxes and interest.

Degree Of Operating Leverage

A measure, at a given level of sales, of how a percentage change in sales volume will affect profits. The degree of operating leverage is computed by dividing contribution margin by net operating income.

Variable Costs

Costs that change in proportion to the level of activity or volume of output produced.

Fixed Costs

Overheads that are unaffected by the quantity of output or sales, for example, tenancy costs, wages for staff, and indemnity expenses.