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Yu-Tung Is a Sales Executive at Company That Manufactures Copy

question 54

Multiple Choice

Yu-Tung is a sales executive at company that manufactures copy machines. She is working on convincing a large corporate client to use her company's copiers. Although she knows that the task at hand is challenging, she is determined to achieve her objective. Which of the following is responsible for extrinsically motivating Yu-Tung to convince the client?


Definitions:

Fixed Costs

Expenses that do not change with changes in the volume of production or sales, such as rent, salaries, and insurance.

Variable Costs

Costs that vary directly with the level of production or sales activity.

Contribution Margin Ratio

A financial metric that shows the portion of sales revenue that is not consumed by variable costs and is available to cover fixed costs.

Net Income

The earnings of a company after taking into account all expenses, including operational costs, interest, and taxes, subtracted from its total revenue.

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