Saginaw Refrigeration Company Manufactures and Sells Refrigerator and Freezer Units

question 100

Multiple Choice

Saginaw Refrigeration Company manufactures and sells refrigerator and freezer units for retailers of perishables.The company's sales manager is preparing to determine how big its sales force should bE.Its 2001 forecast includes 100,000 refrigerator units and 55,000 freezer units for a total of $38,750,000.It estimates that a typical member of its sales force could be expected to bring in $1,000,000 in sales in 2001.Its sales force expects to spend 3 hours per day (or 33 percent of their 9-hour day) in face-to-face selling.The remaining six hours will be spent servicing (20 percent) ,doing paperwork (20 percent) and traveling (27 percent) .
Each sales rep gets two weeks' vacation and two week of in-home training and meetings per year.
Saginaw Refrigeration figures that its 100 best customers should be called on every week (52 times per year) for one-half hour.Its 450 medium-sized customers should be called on twice a month for one half-hour.Its smallest customers (120) need a monthly call of 15 minutes.
-Which method does Saginaw Refrigeration use for classifying its customers?

• A)The ABC Rule of Account Classification
• B)The 80/20 principle
• C)The buildup approach
• D)The bundling approach
• E)The incremental approach

Analyze the effects of specific corporate financial decisions on market perceptions and shareholder value.

Distinguish between a stock dividend and a stock split and their implications for investors and the company.

Understand different types of computer systems and software used in business.

Recognize the significance and applications of various software programs in organizational contexts.

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Definitions:

Marginal Revenue Product

The additional revenue generated from using one more unit of a factor of production.

Marginal Expenditure

The supplementary cost resulting from acquiring an extra unit of a good or service.

Economic Rent

Economic rent is the excess payment made to or received by a factor of production over and above what would have been needed to bring that factor into production.

Competitive Factor Market

A market for inputs where firms purchase resources necessary for production, characterized by many sellers and buyers.