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The Following Information Relates to a Product Produced by Malkovich

question 56

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The following information relates to a product produced by Malkovich Company: The following information relates to a product produced by Malkovich Company:   Fixed selling costs are $500,000 per year, and variable selling costs are $12 per unit sold. Although production capacity is 600,000 units per year, the company expects to produce only 400,000 units next year. The product normally sells for $120 each. A customer has offered to buy 60,000 units for $90 each. The incremental cost per unit associated with the special order is A)  $64. B)  $69. C)  $81. D)  $84. Fixed selling costs are $500,000 per year, and variable selling costs are $12 per unit sold. Although production capacity is 600,000 units per year, the company expects to produce only 400,000 units next year. The product normally sells for $120 each. A customer has offered to buy 60,000 units for $90 each.
The incremental cost per unit associated with the special order is

Recognize the value of providing company feedback on market dynamics and competitor activities.
Comprehend the challenges and necessity of emotional self-control in sales.
Understand the role of a salesperson as a manager of sales territory and problem solver for customers.
Realize the significance of practice in developing selling skills beyond theoretical knowledge.

Definitions:

Thomas Jefferson

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