As the Sales Potential of a Given Territory Increases,sales Performance

question 16

Multiple Choice

As the sales potential of a given territory increases,sales performance of the sales rep assigned to that territory will generally:

• A)decrease.
• B)stay the same.
• C)increase at the same rate as the increase in sales potential.
• D)increase for a time,but then level off.
• E)increase for a time,but then decrease significantly.

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Definitions:

Total Revenue

The total amount of money received by a firm from sales of its products or services, calculated as the quantity sold times the price per unit.

MC < MR

A condition in economic theory where marginal cost is less than marginal revenue, suggesting that increasing production would be profitable.

Profit Maximized

The point at which a firm achieves the highest possible profit margin, where marginal revenue equals marginal cost.

Total Cost

The overall expenditure incurred by a company in the production of goods or services, including fixed and variable costs.