Johan Yee Has Been a Sales Representative at a Medium-Sized

question 30

Multiple Choice

Johan Yee has been a sales representative at a medium-sized textbook publishing house for five years. He has just been promoted by the sales director of his company to sales manager of a new territory. As sales manager, he is tasked with hiring and training three new sales representatives for his team.
-Soon after receiving the promotion,Johan is approached by the administrative assistant of his former sales unit. She tells him that she wants to join his team as a sales representative. She points out that she has solid knowledge of the products and company procedures already,and that he knows that she is a hard worker. What other benefit would there be to Johan in hiring her as a sales representative?

• A)He knows that she fits into the company culture and understands its mission.
• B)He knows that he can pay her less than someone hired from outside the company.
• C)He has a personal friendship with her,which means he will be able to manage her better.
• D)He knows that she is outgoing,which is the primary characteristic of a good salesperson.
• E)He has never had a disagreement with her,so there is no reason not to hire her.

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Definitions:

Marginal Cost

The escalation in total financial outlay due to the creation of one more unit of a product or service.

Average Total Cost

Calculated by dividing the total cost to produce a product by the quantity of the product produced, it represents the per-unit cost of production.

Bygones

In economics, the principle of "letting bygones be bygones" implies that past costs, which cannot be recovered, should not factor into future economic decisions.

Total Revenue

The complete total of earnings a firm gains through product sales or service charges over a set period.