If sales managers must choose in order to finalize some business, they should extend credit against room sales rather than for banquet sales, which have a lower profit margin.

Question

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Extending credit against room sales rather than for banquet sales is advisable because room sales typically have a higher profit margin. This means that the financial risk associated with extending credit is offset by the potential for higher returns from room sales compared to the lower returns from banquet sales.

If Sales Managers Must Choose in Order to Finalize Some