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Question
An insurance company is considering using either (a) independent sales agents who would receive a seven percent (7%) sales commission on sales or (b) its own insurance salespeople who would receive a five percent (5%) commission, salaries, and benefits. Additionally, with a company salesforce, sales administration costs would be incurred for a total fixed cost of $650,000 per year. At what level of sales would independent salespeople be less costly to the firm?
a. $650,000
b. $3,250,000
c. $6,500,000
d. $32,500,000
e. $35,200,000
Answer
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Related questions
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Which of the following statements regarding corporate vertical marketing systems is most accurate?
a. Corporate vertical marketing systems can use either forward integration or backward integration but not both.
b. Corporate vertical marketing systems increase distribution costs.
c. Corporate vertical marketing systems increase investment but decrease fixed costs.
d. Corporate vertical marketing systems are only effective with low-end consumer products.
e. Corporate vertical marketing systems combine successive stages of production and distribution under a single ownership.
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a. integrated
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a. dual distribution
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c. strategic channel alliance
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a. an arrangement whereby a firm reaches different buyers by employing two or more different types of channels for the same basic product.
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c. the blending of different communication and delivery channels that are mutually reinforcing in attracting, retaining, and building relationships with consumers who shop and buy in traditional intermediaries and online.
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Tostitos Photo
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Q:
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Q:
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b. contributions to political parties and government officials.
c. customer and supplier relationships.
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
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b. the American Marketing Association has the right to discipline marketers based on customer complaints.
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Q:
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Q:
The Consumer Bill of Rights codified the ethics of exchange between buyers and sellers. It was outlined by __________ in __________.
a. President John Kennedy; 1962.
b. President Ronald Reagan; 1983.
c. President William H. Clinton; 1996.
d. President George W. Bush; 2003.
e. President Barack Obama; 2009.
Q:
A law that codified the ethics of exchange between buyers and sellers, including the rights to safety, to be informed, to choose, and to be heard, is referred to as the
a. Lanham Act
b. Fair Practices Act
c. Caveat Emptor Decree
d. Consumer Bill of Rights
e. Customer Consent Decree
Q:
Caveat emptor refers to
a. The legal concept of "let the buyer beware," which was pervasive in the American business culture prior to the 1960s.
b. The marketing concept of "be first or be last," implying that the first company to the marketplace wins.
c. The Latin term meaning that "all is fair in love and war," an attitude that was held by most marketers prior to the 1990s.
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e. The Latin phrase meaning "empty promises," which was a charge placed upon many firms during the period after WWII when products failed to meet their marketing claims.
Q:
The legal concept of "let the buyer beware," which was pervasive in the American business culture prior to the 1960s, is referred to as __________.
a. ad nauseum
b. mea culpa
c. quid pro quo
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Q:
In marketing, the set of values, ideas, and attitudes that are learned and shared among members of a group is referred to as __________.
a. ideals
b. morals
c. ethics
d. culture
e. diversity