Arturo Company's Model a Generator Sells for $456 and Model

question 144

True/False

Arturo Company's model A generator sells for $456 and model B sells for $390. The variable cost of model A is $404 and of model B is $320. If Arturo Company's sales incentives reward sales of the goods with highest contribution margin, the sales force will be motivated to push sales of model A more aggressively than model B.

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Definitions:

Truckload Shipment

The transportation of goods where the quantity is sufficient to fill an entire truck, maximizing the vehicle's cargo capacity.

Less Than Truckload

A shipping method for transporting small freight loads that do not require the full space of a truck.

Demand Information

Data regarding current and future customer demand that is used for planning and optimizing supply chain activities.

Incentive Obstacles

Factors that hinder the effectiveness or implementation of incentive programs designed to motivate specific behaviors or outcomes.