Jason Everson Represents Producers of Several Noncompeting Industrial Product Lines

question 32

Multiple Choice

Jason Everson represents producers of several noncompeting industrial product lines.When he visits his clients,he carries a catalog from each one of the producers he represents.He goes through the catalogs with his clients and then places orders on their behalf with the producers,who pay Jason a commission based on what he sells.Jason is a(n) ______.

• A) auctioneer
• B
• B) broker
• C) selling agent
• D) rack jobber
• E) manufacturer's agent

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Definitions:

Fixed Expenses

Costs that remain constant for a given period regardless of the level of production or sales activity, such as rent and management salaries.

Break-Even

The point at which total costs and total revenues are equal, resulting in neither profit nor loss.

Margin of Safety

Margin of safety represents the difference between actual or projected sales and the break-even sales levels, measuring the buffer a company has before it incurs a loss.

Break-Even

The point at which total costs and total revenues are equal, resulting in no net loss or gain.