Marketing Cost Analysis Shows That One of Buildco, Inc

question 7

Multiple Choice

Marketing cost analysis shows that one of Buildco, Inc.'s customers is unprofitable, so Buildco should:

• A) refuse to sell to that customer.
• B) try to determine why this customer is unprofitable.
• C) drop the customer and shift all fixed costs to the other customers.
• D) assign a new salesperson to that account.
• E) immediately develop a plan to sell more to that customer.

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Definitions:

Majority

More than half of a particular group or amount, often used to describe the age at which a person gains full legal rights and responsibilities.

Exchange Offer

A proposal by a company to trade securities, such as bonds or stocks, for other securities or assets with different terms or values.

Stock Tender Offer

A public offer by a company or individual to purchase a certain amount of shareholders' stock at a specified price for a limited time.

Shares

Units of ownership interest in a corporation or financial asset, representing a portion of the corporation's capital.