Customized Service Agreements Add Value to a Sale By

question 7

Multiple Choice

Customized service agreements add value to a sale by:

• A)allowing salespeople to charge more money for features that are usually free
• B)requiring salespeople to spend more time with customers
• C)convincing customers to spend more money on longer terms
• D)incorporating the customer's special priorities,feelings,and needs
• E)requiring that customers trust salespeople to keep their verbal promises

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Definitions:

Variable Costs

Expenses that vary directly with the level of production or sales volume, such as materials and labor.

Pretax Income

The income that a company earns before any taxes are deducted, representing the profitability of the company before government intervention.

Break-even Point

The level of production or sales at which total costs equal total revenues, resulting in no profit or loss.

Fixed Costs

Costs that are constant regardless of the volume of goods or services produced by a company, including lease payments and maintenance expenditures.