Use the Information Below to Answer the Following Question(s)

question 128

Multiple Choice

Use the information below to answer the following question(s) .
Following a strategy of product differentiation, Luke Company makes a high-end Appliance, AP15. Luke Company presents the following data for the years 1 and 2.
Luke Company produces no defective units but it wants to reduce direct materials usage per unit of AP15 in year 2. Manufacturing conversion costs in each year depend on production capacity defined in terms of AP15 units that can be produced. Selling and customer-service costs depend on the number of customers that the customer and service functions are designed to support. Neither conversion costs or customer-service costs are affected by changes in actual volume. Luke Company has 46 customers in year 1 and 50 customers in year 2. The industry market size for high-end appliances increased 5% from year 1 to year 2.
-Which of the following is a measure of the customer perspective?

• A) return on investment
• B) market share in the high-end appliance market
• C) development of new products or services
• D) production cycle time
• E) revenue growth

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Definitions:

Selling Situation

The specific context or environment in which a sales interaction takes place, including factors like customer needs, competition, and market dynamics.

Group Sales Presentation

A sales pitch or presentation delivered to multiple potential buyers at once, often used to generate interest in a product or service among a collective audience.

Appendix

A section at the end of a document or book that contains supplementary information which is relevant to the main text.