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

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Definitions:

Time-Driven Activity-Based Costing

A method of costing that assigns costs to products based on the time required to produce each product.

Capacity Analysis

Capacity Analysis is the assessment of the production capability of a facility to understand if it meets the demands placed upon it.

Order Fulfillment Department

A division within a company responsible for receiving, processing, and delivering orders to customers.

Time-Driven Activity-Based Costing

A costing method that assigns costs based on the time resources are consumed by activities, improving accuracy in cost allocation.