Lori Winters, a Regional Sales Manager, Is Interested in the Profitability

question 23

Multiple Choice

Lori Winters, a regional sales manager, is interested in the profitability of the different sales reps in her region. She has used a variety of different approaches for allocating fixed sales expenses to the different sales reps, but she reaches very different conclusions depending on which allocation approach is used. In this case, it would be wise for Ms. Winters to supplement her other analyses with an analysis based on

• A) the contribution-margin approach.
• B) the full-cost approach.
• C) the marketing audit approach.
• D) All of these are correct.

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Definitions:

Additional Slice

Refers to an extra unit or portion of a product or service added beyond the current amount.

Efficiency

The optimal use of resources to achieve the desired ends with minimum waste or effort.

Equity

The concept of fairness or justice within the economy that deals with the distribution of wealth and resources.

Trade

The exchange of goods, services, or both within and between countries.