The Sales of Your Product Are Low Compared to Your

question 17

Multiple Choice

The sales of your product are low compared to your competition.The decision facing you is whether to use a sales agency (brokers,manufacturers' representatives) or hire a field sales force.The fixed costs of engaging a sales agency are lower than those of establishing a company sales force,but costs rise faster through an agency.When figuring out sales and costs,the intersection of the costs between sales agencies and sales force (SB) means that ________.

• A) above SB means that the company's costs escalate
• B) the sales agency is the better choice for any sales volume below this point
• C) the sales force is the better choice for any sales volume below this point
• D) the sales agency is the better choice for any sales volume above this point
• E) both choices are equally good-choose the one that you are most comfortable with

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Definitions:

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