A hot tub manufacturer estimates it will take ten personal sales calls,each of which costs $250,and 25 phone calls,each costing $25,to get five retailers to carry its product.The measure of contactual efficiency in dollar terms is:

Question

Quizplus · Accepted Answer

The total cost of the personal sales calls will be:
10 sales calls x $250 per sales call = $2,500
The total cost of the phone calls will be:
25 phone calls x $25 per phone call = $625
Therefore, the total cost of the sales effort will be:
$2,500 + $625 = $3,125
Since the manufacturer is trying to get 5 retailers to carry its product, the cost per retailer would be:
$3,125 ÷ 5 = $625
Therefore, the measure of contactual efficiency in dollar terms is $625.

A Hot Tub Manufacturer Estimates It Will Take Ten Personal