In the 1920s, Producers Had to Shift to a New

question 29

Multiple Choice

In the 1920s, producers had to shift to a new sales orientation, which was characterized by all of the following except

• A) taking orders and delivering goods.
• B) increasing advertising.
• C) determining what goods consumers wanted.
• D) enlarging the sales force.
• E) using occasional high-pressure selling techniques.

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Definitions:

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Profit

The financial gain made in a transaction or business operation, calculated as the excess of revenue over expenses.

Unit Variable Costs

The costs associated with producing one unit of a product or service, which vary directly with the volume of production.

Fixed Costs

Fixed charges that are unaffected by the volume of output or the quantity sold, including rental fees and payrolls.