Sarah Is the Customer Relationship Manager at a Designer Clothing

question 43

Multiple Choice

Sarah is the customer relationship manager at a designer clothing store. She is drafting a letter to Loretta Franklin, a client with whom she has established a good personal relationship over the years. Sarah wants to inform Loretta that because of her excellent credit relationship with their store, Loretta will receive a 25 percent discount on all of her purchases going forward. Which of the following salutations should Sarah use to address Loretta Franklin?

• A) Dear Ma'am
• B) Dear Mrs. Franklin
• C) Dear Loretta
• D) Dear Loretta Franklin
• E) Dear Mrs. Loretta Franklin

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Definitions:

Fixed Overhead Budget

A plan that outlines anticipated fixed costs that do not vary with the level of production or sales.

Fixed Overhead Volume

The quantity of fixed overhead costs that do not change with the level of production or activity.

Standard Cost

An estimated or predetermined cost of performing an operation or producing a good, used in budgeting and pricing decisions.

Raw Material

Basic materials used in the production process as inputs to create finished goods.