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Refer to the scenario below to answer the following questions.
Jason West, owner of A-1 Cleaning, began his enterprise in 2009. Jason's primary focus had been on office cleaning for large corporations. But in recent months Jason saw a decline in demand for office cleaning. Surprisingly, the competitive environment appeared relatively stable with no new competitors. However, Jason understands that office cleaning is a high-frequency service that is usually performed daily; therefore, competitors must have been doing something to attract his customers. Building a competitive advantage seemed to be the only option to offset competition. But as Jason pondered his dilemma, he realized that he needed to better understand how customers assess service quality and what they are looking for in a superior cleaning service, prior to building his competitive advantage.
Jason developed a research plan. First, he gathered competitor information, primarily through pamphlets and Web sites and also from a few phone calls, to find out exactly what competitors offer in their cleaning packages. In addition, Jason obtained from the area Chamber of Commerce an updated list of local corporations to which he would send a short survey.
Though the list of corporations contained 141 local company names, Jason chose to survey 75 of them. To better understand customer service expectations between both small and large corporations, Jason divided his surveys into two categories. The survey questions were designed to extract specific data from respondents with regard to service quality expectations in correlation to service frequency and price.
Jason awaited the results. Though his primary focus had been on large corporations, he was flexible and would aim his efforts differently if needed.
-In this scenario, which of the following is an example of primary data?
Variable Cost
Costs that change in proportion to the level of production or sales volume, such as raw materials and direct labor.
Machine-hour
A unit of measure representing the operation of a machine for one hour, often used to allocate manufacturing overhead.
Margin of Safety
The difference between actual or projected sales and the break-even point, indicating the buffer amount that sales can decrease before reaching a loss.
Break-even Sales
The amount of revenue required to cover all fixed and variable costs, resulting in neither profit nor loss.
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