Sales generally increase in a ________ manner with the addition of salespeople, while costs typically increase in a ________ manner.
A) direct, indirect
B) linear, nonlinear
C) step-wise, linear
D) nonlinear, linear
E) nonlinear, step-wise

Question

Quizplus · Accepted Answer

Sales do not necessarily increase in a direct or linear manner with the addition of salespeople, as there may be factors such as market saturation or product demand that limit the impact of additional salespeople. On the other hand, costs typically increase in a linear manner as each additional salesperson incurs a set amount of base salary and other expenses. Therefore, the best choice is D, where sales increase nonlinearly and costs increase linearly with the addition of salespeople.

Sales Generally Increase in a ________ Manner with the Addition