A Sales Rep Gets the Latest Performance Reports on the Main

question 8

Multiple Choice

A sales rep gets the latest performance reports on the main product he sells and is not happy.His product performs slightly behind that of his closest competitor,and he is afraid that this will lose some current customers or at least prevent him from winning new ones.The Research and Development team have made some major improvements in the product,but the next performance report is not due out for another six months.What should the sales rep do to prevent losing customers?

• A)He should pretend that the recent performance report has not come out and tell his customers that he doesn't know when it will be out.
• B)He should change the numbers just slightly on the performance report,not enough to make it perform substantially better than the competition,just enough to make it perform equally.
• C)He should avoid direct contact with his customers until the next performance report comes out.
• D)He should expose the performance report but explain to his customers that the product has been improved and that those numbers will be out in six months.
• E)He should change the numbers for the competitor so it looks as if the two companies' products perform equally.

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Definitions:

Goods Manufactured

Products that have been completed and are ready for sale, representing the output of a manufacturing process.

Converting Raw Materials

The process of transforming raw materials into finished products or components through manufacturing or production activities.

Direct Labor

The pay received by laborers who are directly contributing to the creation of products or the provision of services.

Factory Overhead

The indirect costs associated with manufacturing, including utilities, maintenance, and depreciation of manufacturing equipment.