Scenario 19.1 Use the Following to Answer the Questions

question 9

Multiple Choice

Scenario 19.1
Use the following to answer the questions.
Jafrum,Inc.is a wholesale supplier of motorcycle accessories,clothing,and tools to various motorcycle retail stores around the country.Jafrum does not manufacture these items,but sells them to other retailers and also sells its merchandise through its website.Sean Thompson is one of the salespeople for Jafrum,and is responsible for obtaining new customers,increasing sales to current customers,and visiting the retail stores throughout the country.Recently,he has been given the sales objective from Jafrum's management to increase sales dollars by 15% in the coming year by adding new customers.Sean's current compensation is based on a $1,000 per month draw,plus 5% of all sales over $100,000.His salary last year totaled $42,000.Management has given Sean the choice of going to a compensation plan where he will earn 15% of all sales,but no draw.
-Refer to Scenario 19.1.Sean is developing his list of potential new retail customers by accessing the yellow pages online.Here he finds the contact information for every motorcycle store in the 48 contiguous states,and eliminates those who currently are his customers.Sean is involved in which step of the personal selling process?

• A)Prospecting and evaluating
• B)Preapproach
• C)Overcoming objections
• D)Closing
• E)Following up

---

Definitions:

Materials

Substances or components that are used in the manufacturing or production process to create finished goods.

Processing Department

A section within a manufacturing facility where a specific type of work or processing takes place.

Conversion Costs

Costs associated with converting raw materials into finished goods, typically including direct labor and manufacturing overhead.

Equivalent Units

A concept in cost accounting used to express the amount of work done on partially finished goods, converted to a number of fully finished units.