Charter Communications Uses the Order-Call Ratio to Measure the Performance

question 137

Multiple Choice

Charter Communications uses the order-call ratio to measure the performance of its salespeople. If, in the past year, a salesperson made $13 million in sales, called on 4,312 potential business customers (either by phone or in person) , and got 1,216 orders, what was this sales rep's order-call ratio (to the nearest whole number percent) ?

• A) 12 percent
• B) 18 percent
• C) 28 percent
• D) 36 percent
• E) 355 percent

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Definitions:

Inventory Turnover Ratio

A measure of how quickly a company sells its inventory in a given period, calculated by dividing the cost of goods sold by the average inventory.

Liquidity Ratio

A financial metric indicating how quickly a company can convert assets into cash to meet short-term obligations.

Return On Assets Ratio

A financial metric that measures the profitability of a company relative to its total assets, indicating how efficiently a company uses its assets to generate profits.

Receivables Turnover Ratio

A financial metric used to measure how efficiently a company collects cash from its credit sales by dividing net credit sales by average accounts receivable.