Many Companies,such as IBM,have Turned to Multiple Sales Channels to Sell

question 7

Multiple Choice

Many companies,such as IBM,have turned to multiple sales channels to sell their products and services.Companies that use multiple sales channels find that this choice has which of the following effects?

• A)Using multiple channels causes confusion,both for the customer and the sales force.
• B)Using multiple channels causes harmony,as all the channels use the same salespeople.
• C)Using multiple channels causes synergy,although it takes planning to make sure the channels compliment each other instead of competing.
• D)Using multiple channels causes hostility,because the different channels bring commissions down for salespeople.
• E)Using multiple channels causes efficiency,as all the channels are managed by the same person.

---

Definitions:

Unit Variable Cost

The variable cost incurred to produce one unit of a product, such as materials or labor.

Net Operating Income

The profitability of a company's core business operations, calculated as gross profit minus operating expenses, excluding interest and taxes.

Sales Commissions

A portion of sales revenue paid to sales personnel as a reward for their sales achievements.

Monthly Net Operating Income

The profit a business makes after paying for all operating expenses but before interest and taxes within a month.