When Defining Sales Territories and Customer Coverage

question 61

Multiple Choice

When defining sales territories and customer coverage:

• A)All customers should be treated the same.
• B)Only major customers should receive sales calls.
• C)The company aligns the sales force appropriately with various customers.
• D)All of the choices are correct.

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Definitions:

Average Total Cost

The total cost of production divided by the number of goods produced; a measurement of the cost of producing each unit.

Marginal Costs

The increase in cost resulting from the manufacture of one plus unit of a good or service.

Fixed Costs

Costs that do not change with the level of output, remaining constant regardless of the scale of production or services provided.

Marginal Revenue

The additional income from selling one more unit of a good; sometimes equal to the price of the good.