Figure 7-3

question 97

Multiple Choice

Figure 7-3.Hamilton Company manufactures engines. Hamilton produces all the parts necessary for its engines except for one electronic component, which is purchased from two local suppliers: Traynor Inc. and Bello Company. Both suppliers are reliable and rarely deliver late; however, Traynor sells the component for $10.00 per unit and Bello sells the same component for $8.95. Hamilton purchases 70% of its components from Bello, because of the lower price. The total annual demand is 75,000 units.
-Refer to Figure 7-3. Calculate the activity rate for warranty work based on warranty hours. Round to the nearest whole dollar.

• A) $268 per hour
• B) $266 per hour
• C) $264 per hour
• D) $262 per hour
• E) $287 per hour

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Definitions:

SPIN Approach

A sales technique that focuses on Situation, Problem, Implication, and Need-payoff to better understand and address customer needs.

FAB Presentation

A selling approach focusing on Features, Advantages, and Benefits of a product or service to persuade customers.

Referral

A recommendation from one person to another, directing someone towards a particular service, product, or professional.

Complimentary

Given free of charge, often as a courtesy or for promotional purposes.