The Table Below Shows How Total Donations, Average Donations, Total

question 115

Multiple Choice

The table below shows how total donations, average donations, total labor costs and average labor costs vary depending on the number of employees State U hires for its fundraising activities. $$\begin{array} { | c | c | c | c | c | } \hline \begin{array} { c } \text { Number of } \\\text { Employees }\end{array} & \begin{array} { c } \text { Total } \\\text { Donations }\end{array} & \begin{array} { c } \text { Average } \\\text { Donations }\end{array} & \begin{array} { c } \text { Total } \\\text { Labor Costs }\end{array} & \begin{array} { c } \text { Average } \\\text { Labor Costs }\end{array} \\\hline 1 & \$ 30,000 & & & \$ 8,000 \\\hline 2 & \$ 42,426 & & \$ 17,000 & \\\hline 3 & & \$ 17,321 & \$ 27,000 & \\\hline 4 & \$ 60,000 & & & \$ 9,500 \\\hline 5 & & \$ 13,416 & \$ 50,000 & \\\hline\end{array}$$ The Chair of the Economics Department at State U says that fundraising employees should be hired as long as their marginal benefit exceeds their marginal cost. If the University follows this advice, then ______ employee(s) will hired, and the net benefit (total donations minus total labor costs) will be ______.

• A)1; $22,000
• B)2; $25,426
• C)3; $25,426
• D)2; $3,476

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Definitions:

Investigative Selling

A sales technique involving detailed research and questioning to understand a customer's specific needs and challenges, leading to customized solutions.

Transactional Selling

A sales approach focused on short-term interactions where the primary goal is to make an immediate sale rather than build a long-term relationship.

Source Partnering

The strategic collaboration between buyers and suppliers intended to improve or optimize the sourcing process.

Probing

The technique of asking questions to gather more detailed information or clarify ambiguities, often used in sales, negotiations, or counseling.