In Deciding on the Right Balance Between Control and Flexibility

question 113

Multiple Choice

In deciding on the right balance between control and flexibility in a channel, marketing managers must consider all of the following except _______________.

• A) The type of products involved
• B) Cost issues among the various options
• C) Strength of belief in the accuracy of the sales forecast
• D) Likelihood that major changes will occur in the customer or competitive marketplace that would necessitate restructuring the channel
• E) None of the above

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Definitions:

Net Operating Income

The total profit of a company after operating expenses are subtracted from gross profit but before income taxes and interest are deducted.

Fixed Monthly Expenses

Regularly occurring costs that remain the same each month, such as rent or salaries.

Contribution Format Income Statement

An income statement format that separates fixed costs from variable costs and is used to calculate the contribution margin.

Unit Sales

The quantity of products sold by a company, not accounting for any bulk, wholesale, or grouping discounts.