Which of the Statements Are Usually True Regarding the Financial

question 10

Multiple Choice

Which of the statements are usually true regarding the financial impact of increasing the sales force size?

• A) The average sales volume per salesperson will likely increase.
• B) The average profit per salesperson is likely to decrease.
• C) While average profits per salesperson may decrease, total company profits may increase.
• D) only a and b above are true.
• E) only b and c above are true.

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Definitions:

Status Quo Pricing

A pricing strategy where prices are set and maintained to match those of the competition or to adhere to existing market conditions, without seeking to disrupt the current market balance.

Average Fares

The median price paid by passengers for transportation services, such as for airline or train tickets.

Delta

A measure of change in a variable or function; in finance, it can represent the change in the price of an option relative to a change in the underlying asset's price.

American Airlines

A major American airline serving domestic and international routes, recognized for its extensive network.