If a Vendor Has Correctly Used Marginal Analysis to Select

question 14

Multiple Choice

If a vendor has correctly used marginal analysis to select its stock levels for the day (as in the newsperson problem in the text) , and if the profit resulting from the last unit being sold (C_u) is $120 and the loss resulting from that unit if it is not sold (C_o) is $360, which of the following is the probability of the last unit being sold?

• A)Greater than 0.90
• B)Greater than 0.85
• C)Greater than 0.75
• D)Greater than 0.25
• E)None of these

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Definitions:

Specific Tasks

Particular duties or responsibilities assigned to someone as part of their job or project.

Potential Buyer

An individual or organization with both the interest and means to purchase a product or service.

Selling Process

The sequence of steps taken by a seller to engage a potential customer with the aim of closing a sale, typically including prospecting, presentation, and follow-up.

Preapproach

The research and planning stage before a salesperson makes initial contact with a potential client.