A Manufacturer's Rep Can Sell One Single Product Line,or Can

question 63

Multiple Choice

A manufacturer's rep can sell one single product line,or can sell for non-competing companies (also known as "principals") .What would be the main advantage for the manufacturer's rep of selling multiple product lines?

• A)The manufacturer's rep would then become a "one-stop shop" for that industry,and would be able to leverage interest in one product line to sell more of others to the same customers.
• B)The manufacturer's rep would sell fewer of each type of product but more products overall,thereby carrying less risk if the economy starts to soften.
• C)The principals would give the manufacturer's rep a higher commission because the rep was carrying products from multiple principals,and they would feel the need to compete with each other for the rep's loyalty.
• D)The principals would monitor the manufacturer's rep's sales closely to make sure the rep was not selling more of other product lines and neglecting theirs.
• E)The principals would be able to sell their product through many different manufacturer's reps in the same geographic area.

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Definitions:

MRP

Stands for Material Requirements Planning, a system for calculating the materials and components needed to manufacture a product.

Wage Rate

The amount of money paid to workers for their services, usually expressed per hour or per unit of work done.

Competitive Employer

A firm that operates in a competitive labor market, setting wages based on supply and demand rather than having the power to influence market conditions.

Wage Rate

The amount of money paid to an employee per unit of time or per task performed, often expressed as an hourly or piece rate.