Networkcar

question 9

Multiple Choice

Networkcar.com sells a plug-in device that connects to computer diagnostic ports that are standard on cars.The device beams signals to dealers who can remotely diagnose or spot trouble,allowing car dealerships to maintain a closer bond with their customers by offering maintenance before a problem leaves customers with an inoperable or possibly dangerous car.With the device,dealers can better engage in:

• A) management empowerment
• B) management-customer synergy
• C) relationship marketing
• D) transactional marketing
• E) direct selling

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Definitions:

Break-Even Point

The level of production or sales at which total costs equal total revenue, resulting in zero profit or loss.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the percentage of fixed versus variable costs a company has.

Variable Costs

Expenses that change in proportion to the level of production or sales activity.

Composite Units

A measure used in accounting to bundle goods or services together for the purposes of inventory management, costing, or sales analysis.