Kenny Works for a Firm Selling Modern Log Homes and Frequently

question 12

Multiple Choice

Kenny works for a firm selling modern log homes and frequently conducts an open house at the site of a newly completed home.Kenny does this in order to:

• A)save travel time.
• B)cover one idea.
• C)plan for the dynamic nature of selling.
• D)appeal to all senses.
• E)choose the right setting.

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Definitions:

Net Income

The profit or loss of a business after all expenses, taxes, and costs have been subtracted from total revenues.

Selling Price

The selling price is the amount a buyer pays to purchase a product or service from a seller.

Contribution Margin Ratio

The percentage of sales revenue remaining after variable costs are subtracted, indicating the portion contributing to covering fixed costs and generating profit.

Sales Mix

The relative proportions in which a company’s products are sold. Sales mix is computed by expressing the sales of each product as a percentage of total sales.